Archive for Global Dairy Trends

China’s Dairy Shift: From Powder to Cheese

China’s dairy market is shifting gears. While milk powder imports are shrinking, demand for cheese and butter is soaring. What’s driving these changes, and how can global dairy farmers adapt? Discover the trends reshaping China’s dairy appetite and the opportunities they churn out for exporters.

Summary:

China’s dairy market is changing fast, moving from milk powders to cheese and butter, giving global dairy farmers a chance. In 2024, imports of Whole Milk Powder dropped, while cheese imports hit the third-highest record. China’s local milk production faces challenges, offering global farmers new opportunities. As people in emerging markets try more value-added dairy products, farmers should diversify, keep up with trends, stay efficient, and explore new markets to succeed in this shifting landscape.

Key Takeaways:

  • China’s dairy market is experiencing a shift from traditional milk powders to cheese and butter.
  • Whole Milk Powder imports decreased by 5% but saw a resurgence in December 2024.
  • Cheese imports in 2024 were the third-largest on record despite slight declines from 2023.
  • Domestic milk production in China has declined, opening opportunities for global dairy exporters.
  • Farmers need to adapt strategies to capitalize on changing global dairy demand.
China dairy market, milk powder imports, cheese demand, butter imports, global dairy trends

Imagine China’s dairy market as a giant buffet. For years, milk powders were the main course, but now, Chinese consumers are interested in new dairy products like cheese and butter. While moving away from milk powder, they are now opting for cheese and butter. 

Milk Powder: Yesterday’s Leftovers? 

Product2024 Import TrendNotable Statistic
Whole Milk Powder↓ 5%899 million pounds imported
Skim Milk Powder↓ 34%The steepest decline in dairy imports
Cheese↓ 3%Third-largest import volume on record
ButterA record high of 28.4 million pounds

In 2024, China’s appetite for Whole Milk Powder (WMP) shrunk by 5%, with imports falling to 899 million pounds – that’s less than half of what they gobbled up in 2021. Skim Milk Powder? Even less prevalent, with imports plummeting by 34%. Hold onto your seats – December 2024 witnessed a sudden doubling of WMP imports compared to the previous year. Could this be the start of a comeback tour for milk powders? 

According to Li Wei, a dairy analyst at the China Dairy Association, Chinese consumers now seek a wider variety of flavors and textures in dairy products, moving beyond essential nutrition.

Cheese and Butter: The New Crowd Pleasers 

While milk powder’s star may fade, cheese and butter steal the spotlight. Cheese imports in 2024 were the third-largest on record despite a slight dip from 2023. And butter? It’s on a roll, with imports hitting a record high of 28.4 million pounds

Key Takeaways 

  • China’s dairy preferences, shifting towards a wider variety of dairy products like cheese and butter, are evolving rapidly.
  • In 2024, Whole Milk Powder imports dropped by 5%, but December witnessed a surprising comeback.
  • Cheese imports are rising like well-proofed dough, ranking third-largest on record in 2024
  • The decline in China’s domestic milk production has opened up opportunities for dairy farmers worldwide.
  • It’s time for farmers to churn their strategies to match these new flavors of demand

Economic and Policy Flavors 

China’s economy grew by 5% in 2024, but that’s like skimmed milk compared to the growth of whole milk in previous years. Add a shrinking population, and you have a recipe for changing the dairy market’s taste. 

Current trade policies are complicating the situation in the dairy market. While the specter of trade wars has receded, new challenges have emerged. The U.S.-China Phase One trade deal has helped stabilize dairy trade, but ongoing tensions over technology and geopolitics could curdle the relationship at any time. Farmers need to stay alert to these policy shifts.

Global Dairy Trends: It’s Not Just a China Story 

China’s dairy market changes are part of a more significant global trend. Consumers from Southeast Asia to Latin America are developing a taste for value-added dairy products such as artisanal cheeses and probiotic yogurt. 

“We’re seeing similar patterns in markets like Vietnam and Indonesia,” notes Maria Rodriguez, a dairy market analyst at a global food consultancy. “As incomes rise, consumers are experimenting with new dairy products, especially cheese and yogurt. It’s a trend that’s rippling across emerging markets.” 

What’s a Farmer to Do? 

  1. Diversify your dairy products to reduce risk, like spreading your investments. Consider expanding into cheese or butter production.
  2. To adapt successfully, keep abreast of market trends. China’s dairy demand can change direction faster than a cat chasing a laser pointer.
  3. Efficiency is crucial: Invest in technologies that make your farm run as smoothly as fresh cream. In a volatile market, the lean operations will rise to the top.
  4. Consider expanding to new markets. Don’t rely solely on China for exports. There is a high global demand for quality dairy products.

The Bottom Line 

The Chinese dairy market is changing rapidly. However, new opportunities emerge for dairy farmers to explore and capitalize on. Dairy farmers can turn these challenges into a tall glass of success by staying informed, adapting production, and exploring new markets. 

Want to learn more about adapting your farm to these global trends? Check out our “Future-Proofing Your Dairy Farm” article on The Bullvine. And don’t forget to sign up for our weekly newsletter for the latest updates on global dairy markets and innovative farming techniques. Join us in spearheading innovation and progress in the dairy industry together! 

Learn more:

Join the Revolution!

Bullvine Daily is your essential e-zine for staying ahead in the dairy industry. With over 30,000 subscribers, we bring you the week’s top news, helping you manage tasks efficiently. Stay informed about milk production, tech adoption, and more, so you can concentrate on your dairy operations. 

NewsSubscribe
First
Last
Consent

Bram Prins – The Global Dairy Business Mentality

Bram Prins picEvery dairy family builds their agricultural legacy over time.  For Bram Prins it started in the Netherlands over forty years ago. “In 1968 our family decided to move to county Groningen. As the oldest of seven children I worked with my father to start farming 54 ha of arable land where we had 100 cows. “  

This is the early motivation that first inspired Bram Prins to look to agriculture as a career.  However, three decades later he is still passionate about dairy farming and more importantly how it can continue to grow and be profitable.  On February 5th he will share his enthusiasm, experience and insights as a keynote speaker at the 2nd Annual Canadian Dairy Xpo in Stratford Ontario.  If you’re looking for a “day off” this is the exact place to get recharged and revitalized for the year ahead. Building on the resounding success of last year’s inaugural event, Canadian Dairy Xpo 2014 organizers have put together a tremendous diversity of products, experts and entertainment in one place at one time (Check out the full Canadian Dairy Expo program).

Bram Prins: Lifelong Learning and Worldwide Classroom

Despite his early involvement on the Groningen farm, Prins, now sixty-two, doesn’t consider himself to have an agricultural background.  However he provides further explanation. “I do not have an agricultural background, but as farmer I do have a wide scope of interests.” This compelled him to lifelong formal and informal expansion of his studies.  “Until last year I undertook training every year and earned minors and training at Nyenrode Businesss School.” A further source of agricultural edification came through many years of involvement with agricultural interest groups. “From 1985 till 2002 I was member of different boards, mainly feed and milk, in the agricultural sector.”

Prins Consulting

From this growing background Bram was prepared to set up a business group. “In 1990 I was the founder of European Dairy Farmers and in this position I travelled a lot around Europe and collected different data, information and knowledge.”

Twelve years later, Bram decided to leave as President of EDF and started working for Wageningen University.  “I began by developing and giving training in a team of Entrepreneurship.” Since that time, he has given trainings in more than 6 different European countries in Interactive Strategic Management.” His interest in problem solving kept him busy too. “I worked also as advisor for individual farms in special topics including mediation, succession and financial management.” His growing expertise became sought out and he has expanded outside the private sector.  “More and more my work includes governments in supporting or coaching farmers in special situations such as outplacement, solving difficult situations etcetera.”

Global Dairy Farmers

In 2005, this intense building of expertise was the foundation for Bram to start Global Dairy Farmers http://www.globaldairyfarmers.com. In 2004 he was joined by another colleague and started one year later GDF  In 2009 Elise Bregman started working for Bram and  became Manager of GDF. Prins is financially responsible for 100% of the company.” Bram is enthusiastic about the need for a business such as the one in inaugurated with Global Dairy Farmers.  Here is someone who is unique in being eager to work on the problems faced by the dairy industry. “I am always looking for solutions to impossible situations and building relationships based on trust.” Bram outlines the core values of GBF. “We are focused on Global Dairy Farmers, rural development and entrepreneurship.” He points out the international growth that has taken place. “This has led to coaching farmers both inside and outside the Netherlands.”

Facing Challenges. Feeding the World.

The challenges faced by dairy producers have a special place in the heart of the President of GDF. Bram sees feeding the world as the number one challenge facing the dairy industry. At the same time, the industry itself is facing globalization. This raises the reality that today milk prices are becoming more equal worldwide. Dairy producers need to become excellent managers. After that, the biggest challenge facing the industry is the one of fulfilling the wishes of the consumer. The producers must accept and deliver what the consumer values.

Think Like An Entrepreneur

As Prins watches the changes that take place internationally, he is especially convinced that dairy producers must think more like entrepreneurs.  Worldwide the influence of farmers as a political group is declining.  The industry must face the reality that there is much less financial support from governments. Having said that he recognizes that farm business operation is evolving. “In some places dairy farming is just like normal business already. Especially in the new upcoming milk regions where backward integration is usual already.”  Prins sees further globalization of milk production including, “in the long run in Canada.”

Bram Prins has 3 children and 14 grand children

Bram Prins has 3 children and 14 grand children

The Future Marketplace

Bram’s global perspective sees new ways that will differentiate dairy producers since eventually it will no longer be by price only.  He sees that culture, climate and growing conditions will have an impact on competitiveness in the dairy marketplace.  Infrastructure will be of prime importance to the sustainability of the dairy industry of the future.

Best Advice for 21st Century Dairy Producer

Prins encourages dairy producers to think big and see the total picture.  “You must look beyond the farm gate and be aware of what is happening worldwide in dairying and in other agricultural sectors too.”  Bram has personally observed, trained and advised dairy stakeholders on the necessity of being market oriented, thinking value-added and dealing with price fluctuations. “If you look at the increasing influence of the market, I believe the next major challenge will be the creation of added value; in my eyes, the step towards sub-flows within dairy production is a logical next step.”

Always Pro-Actively Moving with the Changing Times

When confronted with the issue of globalization, many of us sit back and stress out asking “How bad are things going to be?” Bram Prins urges the dairy sector to pay attention to three evolving areas. “Dairy producers must address the issues relating to sustainability, animal welfare and pro-active communication. “The latter issue especially causes Prins to urge “It is a necessity to build bridges between producers and consumers.” Unfortunately, another of the trends of the industry one that Bram points out.”There is a lack of farmers and qualified labor.”  While this is a reality, he also sees the potential solution. “We will see growth of the size of our farms with the help of automation.”  Expanding further on this side Prins also sees it applied directly to cow management. “We are coming to a cow approach based on ICT in the growing herds.”

The Bullvine Bottom Line

Bram Prins is a dairy industry futurist and is dedicated to serving the dairy sector and looking for innovations, trends and new farm systems. Global Dairy Farmers is committed to identifying problems and finding solutions through discussion, research, projects and strategic studies. Bram Prins recognizes that “Developing future scenarios is one thing: implementing them is another matter.”  Bram hopes to share and inspire a value-added vision of the dairy industry on Thursday, February 6th at Canadian Dairy Xpo 2014 where he will speak on the creation of Global Dairy Farmers and the top 4 insider global dairy trends that every producer needs to know. “It’s the perfect place to get leading edge feedback and encouragement about dairy perspective in the 21st Century and the challenges and opportunities that await us. Be inspired by Bram Prins at the Maizex Dairy Classroom and you could go home from your “day off” with a solution that’s “right on!”

Want to learn more about the top 5 insider global dairy trends? Bram will be presenting at Canadian Dairy Expo on February 6th.

Send this to a friend