China boosts dairy imports as domestic supply struggles

CHINA – China is increasing its dairy imports to address growing demand as the country faces ongoing challenges with its domestic milk production, analysts report.

The shift comes as consumption and persistent supply issues rise, pushing China to rely more heavily on international markets, particularly those of countries like Australia, New Zealand, and Malaysia. 

This development is reshaping global dairy trade patterns, especially as trade tensions with North America continue to complicate supply chains.

China’s domestic dairy industry has struggled to keep pace with the nation’s appetite for milk, cheese, and other dairy products. 

Factors such as limited arable land, environmental concerns, and inefficiencies in local farming have hampered production. 

At the same time, a growing middle class and changing dietary habits have driven up demand, leaving a gap that imports are now filling. 

Experts note that this trend is likely to continue as China seeks reliable sources to meet its needs.

Meanwhile,  Australia and New Zealand are emerging as key suppliers, benefiting from their strong dairy industries and proximity to Asia. 

Malaysia is also stepping up as a notable player, offering competitive options. 

“We’ve seen a steady rise in orders from China over the past year,” said a spokesperson from a New Zealand dairy cooperative. “It’s a clear sign they’re looking to us to help bridge their supply shortages.” 

This shift is proving to be a boon for these exporting nations, though it raises questions about long-term sustainability.

Trade tensions with North America, particularly the United States, have further influenced China’s import strategy. 

Recent U.S. tariffs on Chinese goods, followed by retaliatory measures from Beijing, have disrupted dairy trade flows. 

As a result, China is turning away from North American suppliers and strengthening ties with other regions. 

Analysts suggest this could lead to higher prices for U.S. dairy farmers, who are losing a key market, while benefiting competitors in the Pacific.

The Chinese government is also taking steps to support its domestic industry, but progress remains slow. 

Efforts to modernize farms and boost output have been met with challenges, including high costs and environmental regulations. 

Despite these efforts, experts predict that reliance on foreign dairy will persist for the foreseeable future.

This growing dependence on imports underscores China’s evolving role in the global food market. 

As the world’s second-largest economy continues to grapple with supply woes, its decisions are sending ripples across international trade, affecting farmers and consumers alike. 

For now, nations like Australia and New Zealand are poised to capitalize on this opportunity, while China balances its domestic goals with immediate needs.