The latest March 2019 updates of Chinese dairy imports show an increase of +9.8% in volume and +17.8% in value, with a strong increase in percentage of Whole Milk Powder (WMP ) and Skimmed Milk Powder (SMP), Infant Milk, Packaged Milk and Cream.
The WMP shows the highest growth: + 57.5% compared to March 2018, almost entirely from New Zealand (94% of the market share).
After two months of decreasing trends, the average March price of imported products, transformed into milk equivalent, stood at USD 40.46 / 100 kg.
In the first quarter of 2019, China imported 862,907 tons of dairy products (+13.8% on a trend basis), equal to USD 3 billion (+15.8%).
The first import item by value is Infant Milk Formula, whose imports in January-March grew by +20.5% by volume, and by +27.3% in value. The graph shows an increase from 13% to 20% in the New Zealand market share, and a 4.6% decrease in Dutch imports, China’s leading supplier.
In the “Milk and Cream” sector, there were high growths: +14.9% for Packaged Milk and +63% for Milk Cream. Although the EU-28 is confirmed as the main supplier of packaged milk, there is an increase in the New Zealand quota.
Chinese purchases of Cream from New Zealand doubled in the first three months of 2019, and there were also increases in some European countries, such as France and the United Kingdom.