Demand for milk in China outstrips supply

China’s demand for dairy imports is set to grow for at least the next two years, as its local milk production struggles under structural change in the supply chain, an industry report has found.

In the report, ‘China’s Raw Milk Supply: Still Dreaming of a White River’, international food and agribusiness banking specialist Rabobank says China is expected to be one of the key drivers of global dairy consumption growth over the next decade.

Report co-author, Rabobank director of dairy research New Zealand & Asia Hayley Moynihan, says China’s milk supply chain is rapidly changing, with the development of large-scale dairy farms accelerating since 2008, in the wake of the ‘melamine crisis’.

At the same time, ‘backyard’ dairy farming has declined, primarily due to inconsistent milk quality and regulatory pressures.