Guangdong Import Dairy Products More YOY in Apr 2017

[2017-07-18]

According to China Customs statistics, this April, Guangdong Province imported dairy products 47,000 tons, up 20.3% year-on-year (YOY); worth CNY 1.56 billion, a double increase YOY; average import price at 33.2 yuan per kilogram, up 68.2% YOY.

1. Characteristics of the dairy import to Guangdong in April:

(1) Ordinary trade quantity made more than 90% at a substantial increase. In April, Guangdong imported 45,000 tons by ordinary trade, up 34.1% YOY, accounting for 96.7% of the total import.

(2) Main sources were EU, New Zealand and USA. In April, dairy imports from EU were 17,000 tons, up 2.5%; imports from New Zealand 14,000 tons, up 33.1%; imports from USA 8,347 tons, up 43.2%; the three sources together accounted for 85.6% of the total.

(3) Main products were milk powder and whey. In April, Guangdong imported 19,000 tons of milk powder, up 47%, accounting for 40.4% of the total; imported 11,000 tons of whey, up 28%, accounting for 23.4%.

2. Causes of the large increase in the dairy imports:

First, dairy price differences between home and overseas stimulated the imports. This April, the globally 186th auction of whole milk powder reached the average price of USD 2,998/ton, equivalent to China's CIF price of CNY 27,400/ton, convertible into raw milk price of 3.23 yuan/ton; while China’s Ministry of Agriculture monitored domestic raw-milk price at 3.51 yuan/ton.

Second, Chinese consumers have big reliance on foreign milk powder. Following China’s new family plan of two children, domestic consumer market has a growing demand for infant milk powder; meanwhile, due to domestic dairy problems in recent years, the consumers are much more reliant on foreign milk powder so as to drive more imports.
Source: ETCN
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