Global dairy market shift: China seeking other options
China is currently turning toward Australia, New Zealand and Malaysia for more dairy products.
Earlier this month, the Chronicle newspaper noted the large export potential of the Chinese market for Australian dairy products, explaining that more of the country’s cream, cheese, yogurt and milk are increasingly finding their way into Chinese shopping trolleys, which creates a significant opportunity for Australian dairy producers.
Chinese production lagging
China is not just looking for more options for importing dairy products because of the trade disputes with Canada and the US. The situation is exacerbated by production issues, with Rabobank recently releasing a report showing that China’s milk supply is set to fall further this year.
Although it has been building in years past, Chinese milk production dropped in 2024, following several consecutive years of significant expansion, according to Michael Harvey, report co-author and RaboResearch senior dairy analyst. He predicts that Chinese dairy imports are therefore likely to improve in 2025 “compared to a paltry 2024”.
Meanwhile, he also notes that Australian dairy exports to China and other countries had a very strong year in 2024 and are expected to increase further this year, “with slightly increased farmgate milk supply last year and higher export returns”. Harvey added: “Of the 2 largest volume trade flows, Australian cheese exports jumped 30% and skim milk powder exports lifted 27%.”
Making imports welcome
To ensure their market needs are met, the team of the China International Import Expo (CIIE) recently toured Australia, New Zealand and Malaysia “to advance the recruitment process” for the 8th CIIE, scheduled for November 2025 in Shanghai. They listed Australia and New Zealand in particular as longstanding partners in China’s agricultural and resource sectors, “each boasting strong economic complementarity and holding significant potential for future cooperation”.
At the 7th CIIE in 2024, dairy products from New Zealand and Australia were well-received by the Chinese market, reports CIIE. In particular, New Zealand dairy company Theland has gained significant popularity among Chinese consumers.
During their tour, the team sought to highlight the CIIE’s role as a premier platform, enabling multinational corporations to tap into China’s expansive consumer market and to capitalise on its robust supply chain ecosystem. One event held by CIIE was a seminar on 19 February in Melbourne, Australia. It was attended by representatives from 13 organisations and firms, including the Australia China Agribusiness Association and the Dairy Industry Association of Australia.
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