Chinese companies continue to invest in the construction of dairy farms and processing sites, and milk production in the country will grow. In 2019, self-sufficiency in milk in the country was 65.6%, it is planned to achieve self-sufficiency above 70% due to investments in new production, while imports will still grow (at least European analytical agencies hope for this). By 2024, compared to 2019, imports of whole milk powder to China will grow by 3.6%, skimmed milk powder – by 4.1%, cheese – by 4.7%, milk fat – by 7.4%. The largest growth rates for imports to China are expected in the category of high-value-added dairy ingredients.
Some preliminary results on the impact of the pandemic on the dairy market from the McCully Group:
- supply chain crisis;
- unprecedented rapid implementation of programs to reduce milk production (meaning the EU in the first place); factories and cooperatives even slightly abused these programs according to analysts;
- sales growth among producers of drinking milk, a trend that has already begun to decline;
- producers who do not have a diversification of supply channels and assortment, and are unable to flexibly adapt to the requirements of consumers and the market (perhaps, even without a pandemic, the obvious point), have suffered.