China's production of whole milk powder forecast to fall in 2024

 China imports of whole milk powder are forecast to fall by 3% in 2024 to 425,000 tons, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.

This is due to a build-up of stocks in 2023 and developing consumer preference for raw milk products over reconstituted products. 

Significant surplus in raw milk production has forced the government to implement subsidy policies to stabilise the domestic processing sector, encouraging greater production of whole milk powder. 

As China does not produce meaningful amounts of higher value products like cheese or butter, most dairy companies process raw milk into milk powder for storage in accordance with the "Fresh Milk Purchase and Sales Contract”.