Friday, March 29, 2024

China import data paints a bleak picture

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China’s imports of milk powder have fallen drastically this year.
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Milk powder imports by China fell 50% during the first half of 2015. Just 344,000t of skim milk powder (SMP) and whole milk powder (WMP) was imported during the January-June 2015 period. This compares with 681,000t during the same time in 2014. When compared against H1 2013, volumes are down 12%.

NZ has supplied 87% of the milk powder purchased by China this year. This is up on the 81% market share held in 2014 but down from the 92% market share in 2013.

China imported just 12,381t of WMP in June 2015. This is the lowest volume of WMP imported in a single month since October 2011. 93% of the WMP was supplied by NZ. Argentina was the next largest supplier at just 300t. 

China's imports of SMP have been more stable than WMP. In June China imported 17,598t of SMP, 11% less than June 2014. The supply of SMP is relatively evenly split between NZ, the EU, and the US. NZ and the EU supplied 30% of SMP requirements in June. The US supplied 28% and Australia supplied 10%.

Earlier in the year NZ supplied a larger percentage of China's SMP requirements. Across the first half of 2015 NZ's market share is 64% versus 18% from the EU and 10% from the US. The drop in NZ's market share in June reflects how competitive this market is. European companies are looking to shift more product to China and other parts of Asia and the Middle East. SMP production has grown in the EU in response to high butter prices. The high butter prices mean more milk is being channeled into the production of butter of which SMP is a co-product.

 

 

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