Here are some powerful stats.
China’s year to date fresh milk production after 3 quarters in 2023 is already close to 30billion litres, being up by over 7% vs same time last year. At the same time China remains the biggest Dairy importer in the world, having imported over $12 billion in 2022 alone (approximately $1billion from Australia).
At this pace, China’s milk production in 2023 is set reach close to 42-43billion litres which would be an absolute record. China’s imports in the same period have declined by over 12% vs same period last year.
China is already the 4th largest Dairy producer in the world and is projected to grow by almost what Australia produces during an entire year (~8 billion litres) in just 3 years.
It will be fascinating to witness the resilience of Dairy markets at this unprecedented level of domestic Chinese milk production as any short term demand inbalance (as it normally happens) could have devastating effects in Global Dairy markets overall.
In my view and in Australia, we have a lot of work to do to ensure we have a resilient Dairy value-chain and one that can protect all its members. From farmers to processors and consumers alike. Relying on our domestic market will not be enough to absorb sismic shocks on international pricing and dairy markets.
We need to start somewhere and embrace volatility as an opportunity and not as a threat. Interesting as well as exciting times ahead for our entire industry.
Fabrizio Jorge
Chief Executive Officer
Beston Global Food Company
