Chinese dairy imports continue to grow, although at a slower pace

After the trade tensions with the U.S., China has stopped all official updates of dairy import data. On the basis of the figures provided by the exporting countries, we can still outline a positive trend in Chinese imports.

The first half of 2018 shows an increase in global dairy exports to China of 3.8% y-o-y, with the EU and the U.S. increasing by +1.1% and +17.7 respectively, while New Zealand loses ground (-6.4%).

The EU is approaching the milestone of 500 thousand tons exported in the first half of 2018, with good performance of infant milk formula (138 thousand tons, +30.4%), which exceeds packaged milk and becomes the main EU dairy product exported to China.

On the other hand, EU slowed the exports of Whey (-1.6%), SMP (-7.5%) and Cream (-9.7%), compared to the first six months of 2017.

EU Cheese export to China grew (+7.8%), even if the volumes are modest: 8,755 tons, of which 1,696 from Italy (from January to May).

The United States gain ground in China: +17.7% with positive results for Cheese export (+34%), which exceeds 8 thousand tons, while SMP export drops, recording -25% compared with the volumes exported in the first half of 2017.

The tariffs knot, however, is far from being untied. How will trade evolve?