China’s consumption of pasteurized milk will grow faster than ultra heat treated liquid milk in coming years as more milk sources become available and due to the development of cold chain logistics, according to a latest study. An increasing number of consumers in economically developed regions will prefer the better flavor and increased health awareness of pasteurized milk, although ultra heat treated milk is expected to still dominate the market for a number of years, according to KPMG’s China Dairy overview released yesterday [15 April 2015]…Full Article: Apr 2015

Key Point

  • According to the KPMG study, Chinese milk powder demand will not grow as fast as liquid milk demand.

ChinaAg Comments

  • Chinese imports of milk can be divided between non-concentrated (e.g. fresh) and concentrated (e.g. condensed, powder, etc.). Overall, China imports far more concentrated milk than fresh milk. New Zealand is China’s top supplier of both types of milk thanks in part to Fonterra, the country’s largest company.
  • From 2012 to 2013, Chinese (incl. Hong Kong and Macau) imports of fresh milk rose from 181,390 MTs to 302,006 MTs. New Zealand (58,016 MTs in 2013) was the top supplier of fresh milk to mainland China, with Australia (16,941 MTs in 2013) dominating the trade with Hong Kong. Germany and France were secondary suppliers (after New Zealand) to mainland China. Indonesia was a secondary supplier to Hong Kong (after Australia).

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