China’s increasing milk consumption creates huge opportunities for dairy producers

­While China’s domestic demand for milk continues to grow, the country’s domestic production capacity remains limited. This can create opportunities for milk producers and exporters, according to a report by US-based market research company Research and Markets.

“In 2017, the consumption of dairy products in China reached about 31.79 million tonnes, representing a compound annual growth rate of about 2.7% in five years (2013 to 2017),” said Ross Glover, CEO of Research and Markets.

Yet China’s production volume of dairy products grew by only 2.1% during the same period.

Citing reasons for the sluggish growth, Glover said the cost of domestic dairy production in China was higher than the global average as it was affected by the high costs of feed, labour and land in that country.

“Therefore, the annual import volume and import value of dairy products in China will continue to grow,” said Glover, pointing to the latest figures from China’s customs authorities, showing that the import volume of dairy products reached 2.74 million tons in 2018, up 7.8% year-on-year at a value of $10.65 billion.

According to statistics from the department of agriculture, forestry and fisheries, milk production in South Africa makes a very small contribution (0.5%) to world production, but in terms of the values of agricultural production in South Africa, it is the sixth largest agricultural industry.


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