China's rapid ascent in the dairy industry, poised to claim the title of the world's third-largest milk producer, is stirring unease among global exporters.
China's Ascendant Dairy Industry Raises Concerns Among Exporters

China’s rapid ascent in the dairy industry, poised to claim the title of the world’s third-largest milk producer, is stirring unease among global exporters.

According to Keith Woodford, Honorary Professor of Agri-Food Systems at Lincoln University, the burgeoning dairy sector in China has garnered attention from industry stakeholders worldwide. Woodford emphasizes that key players like Fonterra and other companies are closely monitoring the situation, recognizing the significant implications of China’s evolving dairy landscape.

With China’s pivotal role in the global dairy market, exporters remain vigilant, mindful of the potential risks associated with overreliance on a single market. Any disruptions or downturns in China could have catastrophic consequences for exporters.

Nevertheless, Woodford notes that China is actively diversifying its dairy imports, mitigating some of the concerns surrounding dependency on a single market. Projections indicate a substantial 25% surge in dairy imports by China over the next decade, signaling opportunities for exporters to capitalize on the expanding market.

As China continues to solidify its position as a major player in the dairy industry, exporters must navigate the evolving dynamics of this crucial market while remaining attuned to potential risks and opportunities on the horizon.

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Van Dairy boss Xianfeng Lu said in February that the deal represented a loss of around 25 million litres of milk per year.

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