China: Dairy and Products Annual

China is the world's fourth largest dairy producer, and a major importer, primarily of powdered milk. Falling international prices and high production costs led to plummeting production in 2015, with only partial recovery expected in 2016. Despite serious structural, infrastructure, and competitiveness challenges facing China's dairy industry, milk production is expected to benefit from improved genetics and gradually increasing average farm size. Imports of UHT milk, dominated by Europe, are expected to benefit from the booming e-commerce platform. U.S. exports continue to be hampered by new registration requirements. Whole milk powder imports are forecast to recover to 400,000 but far below 2014 levels of 671,000 tons.

China: Dairy and Products Annual