OPINION: It was only in 2018 that the Chinese Government embarked on a mission to lift domestic milk production and stop billions of dollars from leaving the country and into the hands of exporters like New Zealand.
It paid off. Chinese net total dairy product import volumes fell 15.7% year on year in 2023, with imports of whole milk powder – a major New Zealand export product – down 395.
However, six years later over-leveraged Chinese farmers are dumping milk and culling cows because it’s no longer financially viable to be a dairy farmer.
Demand for milk has fallen in China because of a slowing birth rate and a broader pullback in consumer spending, a hallmark of China’s struggle to recover its economy.
Now, the Government is rolling out stimulus packages to help dairy farmers.
A drop in China’s milk production may be good news for NZ exporters. China’s pain could be NZ’s gain.
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