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Chinese dairy imports still lagging

China’s dairy imports continue to decline.  In March, whole milk powder imports totaled 80 million pounds, half of what the Chinese bought a year ago and the lowest March number since 2010.  Skim milk powder imports were down nearly 38 percent, butter purchases dropped 35 percent, cheddar cheese and whey product imports were also below a year ago.

New Zealand has the lion’s share of China’s milk powder business: 78 percent of skim milk powder and 99 percent of the whole milk powder.  The U.S. share of the business dropped from 14 percent a year-ago to just 4 percent this March.

HighGround Dairy says while the U.S. is still China’s biggest supplier of whey products, its market share slipped from 49 percent to 44 percent with Argentina, Ireland and Poland gaining share.

Global dairy prices have plunged nearly 50 percent since China pulled-back on imports in February of 2014.