Chinese dairy imports fall far back

China imported large volumes of dairy in the first half of 2021 to replenish strategic food reserves. Apparently they are now more in order, because since October has left dairy imports quite a bounce. The Chinese also imported considerably less milk powder in December than in the previous year.

The import of whole milk powder shows the largest decrease: -39% to 31.877 tons. Skimmed milk powder is also taking a step back, falling by 22% to 20.150 tons. European exports of skimmed milk powder amounted to 52.914 tons in November. Compared to the same month in 2020, this is a decrease of 12%. This export volume is also the lowest since September 2017, according to figures from Eurostat. Major customers Algeria and China in particular imported considerably less product. Taking into account the Chinese import figures for December, it is likely that December will not be a good month for European exports of skimmed milk powder either.

Whey powder lower, cheese and butter higher 
Back to the Chinese import figure in December. Whey powder fell by 32% to just under 40.000 tons. The import of baby milk powder is stable at approximately 30.000 tons. Butter imports did increase, by 17% to 7.637 tons. Cheese imports rose by 18% to 13.651 tons. However, butter and cheese are small product groups compared to milk powders.

Over the whole of 2021, China has actually imported considerably more dairy. Whole milk powder increased by 32% to 849.246 tons. New Zealand in particular has benefited greatly from this. The import of skimmed milk powder increased by 27% to 425.982 tons. The import of whey powder, which is an important export product for the Netherlands, rose by 15% to 718.033 tons. Cheese and butter imports also increased significantly, by 36% to 176.152 tons and 14% to 97.465 tons respectively. Baby milk powder is the exception to the rule with a drop of 22% to 272.652 tons.

Chinese New Year
Currently, Dutch dairy exporters describe Chinese dairy demand as calm. This may be related to the Chinese New Year celebration that takes place on February 1. After that, the Asian country will take stock and probably take a critical look at its strategic food reserves again. This spring should show whether (and to what extent) Chinese dairy imports will pick up again. Like European retail, overseas importers in Asia will also have to get used to the rapidly rising dairy prices in the second half of 2022, exporters say.