In the September year, though, China imports decreased 15%, largely because of a big drop-off in demand for powders.
Whole milk powder imports fell 53% in the September year and skim milk powder by 21%.
Fonterra chief executive Theo Spierings said inventory levels were now back to “normal” in China.
Other Asian imports remained strong in the July year, increasing 11%, with skim milk powder up 25% and whole milk powder and cheese up 14%.
Imports by the Middle East and Africa were up 1% in the year to July compared to last year although the growth rate was slowing.
On the supply side, Fonterra said the rate of milk production growth from major exporting countries had eased, excluding the European Union, in response to lower global dairy prices.
However, only New Zealand has lowered its production this year compared to last year, by 1%.
Fonterra has forecast a 5% reduction in milk collections this season and subsequently reduced the amount of product being offered since August on the GlobalDairyTrade platform by 146,000 tonnes for the year.
Inventory levels match last year’s and Spierings warned they could go under by season’s end with the risk of El Nino adding uncertainty around milk volumes and inventory levels.
While the rate of growth in United States milk production has slowed in recent months, the European Union has seen positive growth in the five months since the April 1 removal of quotas with production rising 1% in the year to August.
Among the major EU producers, the Netherlands was up 4%, the United Kingdom up 3% and Poland and Germany up 2%.
Dairy exports remained strong from Australia and Europe in August but the US was down 11%, largely because of increased domestic demand.
Cheese was the best performer in a 2% lift in NZ exports in August.
