Magazine article Amber Waves

China Provides Opportunities for U.S. Exporters: Strong Dairy Demand and an Expanding Market for Agricultural Inputs Destined for a Growing Dairy Herd

Magazine article Amber Waves

China Provides Opportunities for U.S. Exporters: Strong Dairy Demand and an Expanding Market for Agricultural Inputs Destined for a Growing Dairy Herd

Article excerpt

In 2016, China had the world's third largest dairy market, and it is expected to grow by 10 percent, in total, over the next 5 years. An expanding network of refrigerated facilities for production, distribution, and storage and an advancing e-commerce platform are making dairy products accessible to a greater portion of the Chinese population.

To satisfy demand, China's domestic dairy industry has been rapidly modernizing in an effort to increase production and improve distribution efficiency. Now and over the next 5 years, three-quarters of all dairy consumed in China will continue to be produced domestically. However, milk production remains relatively inefficient. On average, cows in China were half as productive as cows in the United States, producing 5 metric tons of milk per cow as compared with 10.3 metric tons. To enhance production, China's Government has promoted the creation of large dairy corporations and tightened regulation of the dairy industry. Expanded dairy operations allow Chinese producers to incorporate higher quality feed while reducing the cost per unit of production as fixed costs are spread across greater output. Additionally, the consolidation of companies has reduced costs for the Government by making it easier to monitor food safety.

As consumption outpaces its domestic supply, dairy exporters are finding new opportunities in China's market. New Zealand and Australia have free-trade agreements (FTA) that lower tariffs on their dairy products entering China. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.