Source: General Administration of Customs Website
According to Customs statistics, China imported 238,000t dairy products in the first quarter of the year, registering a growth of 9.5% than that of the same period last year (the same below). The total import value is USD 610 million, registering a growth of 23.6%. The average import price is USD 2,580/t, registering a growth of 12.9%. The imports have the following main characteristics:
I. Imports through general trade play a prevailing role with rapid growth in bonded-zone-stored transit cargos and bonded-warehouse entry-exit cargos. In the first three quarters, China imported 214,000t dairy products through general trade, registering a growth of 18% and accounting for 89.9% of all dairy products imported in the same period. Bonded-zone-stored transit cargos and bonded-warehouse entry-exit cargos amounted to 21,000t and 1,681t respectively, registering a growth of 330% and 55.3% respectively.
II. Imports mainly come from the US, EU, New Zealand and Australia: in the first three quarters, China imported 78,000t dairy products from the US, registering a growth of 120%; 76,000t dairy products from the EU, registering a drop of 3.8%; 49,000t dairy products from New Zealand, registering a drop of 28.9%; 23,000t dairy products from Australia, registering a growth of 24.2%. The imports from the foregoing four countries account for 95% of total imports.
III. Imports by foreign-funded enterprises and state-owned enterprises grow rapidly and imports by private enterprises drop: in the first three quarters, China’s foreign-funded enterprises imported 88,000t dairy products, registering a growth of 12%; state-owned enterprises imported 81,000t dairy products, registering a growth of 23%; private enterprises imported 67,000t dairy products, registering a drop of 6.2%.
IV. Main destinations of imports include Shanghai, Beijing, Tianjin, Guangdong and Zhejiang. In the first three quarters, Shanghai imported 58,000t dairy products, registering a growth of 14.7%; Beijing imported 32,000t dairy products, registering a drop of 38.4%; Tianjin imported 31,000t dairy products, registering a rapid growth of 92%; Guangdong imported 23,000t dairy products, registering a drop of 25%; Zhejiang imported 23,000t dairy products, registering a growth of 1.1%. The foregoing five provinces account for 70.2% of total imports.
V. Main dairy products include whey and milk powder. In the first three quarters, China imported 146,000t whey that grows by 19.4% and accounts for 61.3% with a mean import price of USD 1,551/t, or a drop of 17%. China imported 65,000t milk powders that drop by 7.7% with a mean import price of USD 4,184/t, a substantial increase of 49.9%.
Domestic milk powders used to play a major role in the domestic market for long and imported milk powders occupied the high-end market as supplements to domestic products. For that reason, the total import quantity remained stable and did not constitute a major impact on China’s dairy industry. However, the “Sanlu Milk Powder Event” totally changed the situation. In particular, melamine was found in infant formula milk powders, Yili popsicles, Lipton milk tea and Cadbury chocolate recently, which signified the spreading of “Poisonous Milk Powder Event” to many types of dairy products and dealt a heavy blow to consumer confidence in domestic dairy products. Lots of domestic consumers have gone to Hong Kong to buy milk powders recently and that adds to the difficulty in the sales of domestic dairy products. Dumping of milk has taken place across China from time to time recently, which is a heavy blow to the interests of dairy farmers.
Proposals (omitted)
