China's dairy industry comes forward slow
In China produce 8.5 million cows with an average milk yield of just under 4,500 kg per cow and year a total of 38 million tons. The annual growth rate is calculated at less than 1%.
In contrast to this rising demand to 40.1 million tons with annual increases of less than 1.5%. Rising imports of liquid milk and cheese and butter are the result of this development.
The Chinese producer prices are 55 CT in the years 2014 to converted 48 ct / kg fell in early 2016. Many small dairy farmers give up. Others are trying to co-opt the market margin on direct marketing to the consumer price for themselves. The construction of industrial plants is progressing only slowly.
China's dairy industry has to fight with 5 central issues.
- Milk production takes place mainly in the less densely populated areas of Central and Northern China , because there area competition is less intense.
- The great mass of consumers located in the North-East on the coast and in the South. The land transport routes are long and expensive. The average per capita consumption is 33 kg milk equivalent only in one-third of comparable countries.
- A closed cold chain is available nationwide only in first approaches. Drinking milk produced from milk powder to a considerable extent.
- The prices for full and skimmed milk powder imported are only half as expensive as the products manufactured in their own country. This applies mainly in consumer strong coastal regions.
- In terms of quality and hygiene import goods is considered higher by consumers the products produced in their own country.
The whole milk powder consumption goes to 37% in the children's nutrition. Replay conversion of whole milk powder in milk is estimated on a share of 32%. Milk-based drinks occupy a share of consumption by 22%.
Trade with China is essentially determined by New Zealand, Australia and the EU. UHT milk comes to 66% from the EU. Skimmed-milk powder supplies New Zealand with 58%, whole milk powder almost to 80%. The EU has a share of 21% when importing skimmed-milk powder.
For the year 2016 it is estimated a further increase in the imports of the UHT from 460,000 tons to 650,000 tons. It comes in 1. Line of the EU benefit.
Whole milk powder imports 2014 still amounted to 671.000 and be appreciated for 2016 to 300,000 t. The skimmed milk powder, the numbers of 253,000 tonnes go down In the years 2014 to 180,000 tons in the current year. In both cases, low consumption figures are the cause.
For all problems, China remains a growing market, which imports relies on.
