China’s plummeting birth rate has raised concerns across government and private sectors alike. In a rapidly aging society, businesses are turning to creative solutions.
Among them, the dairy industry — facing a domestic milk surplus and falling prices — sees hope in the revival of population growth. But what could this mean for global dairy trade?
Corporate incentives: when companies support parenting
The Chinese dairy giant Feihe recently announced a new policy to financially support employees who have children, as part of its initiative to stimulate birth rates.
Feihe joins companies like Trip.com and Dabeinong Technology Group, which are offering incentives ranging from 10,000 to 100,000 yuan per child.
In 2023, China’s birth rate dropped to just 6.4 births per 1,000 people, the lowest level since modern records began (Reuters).
Once driven by middle-class growth and rising demand, the Chinese dairy market now faces deep uncertainty.
Global parallels: fertility declines elsewhere too
South Korea, Japan, Italy, and several Eastern European countries are battling similar demographic declines. South Korea recorded the world’s lowest fertility rate in 2022 at just 0.78 children per woman.
In response, companies like Booyoung Group now offer employees up to US$75,000 per child (CNN).
Declining birth rates put pressure on markets like dairy, which rely heavily on young consumers and families.
Trade outlook: revival or illusion?
China remains the world’s largest importer of dairy products. In 2023, the country imported over 620,000 tons of milk powder, according to the USDA. A renewed birth rate could reignite demand — but it’s not guaranteed.
Shifting dietary habits (like plant-based trends), tighter infant formula regulations, and complex certification requirements may slow international expansion.
Strategic moves for the dairy sector
To remain competitive, dairy exporters must:
- Focus on high-value, functional products.
- Embrace traceability and strict quality standards.
- Develop offerings for all life stages, including the elderly.
- Promote nutritional education and milk’s health benefits.
Final thoughts
Corporate-driven pro-natal initiatives, such as Feihe’s, could reshape the demographic landscape. For the dairy industry, it’s a potential lifeline — but only if met with innovation, flexibility, and strategic foresight.
eDairyNews
