As per the latest report of Bloomberg, China is setting the long-term goal to curtail its food imports (Pork, Beef, Mutton and Dairy).

China is currently top Pork consumer and is planning for 95% self-sufficiency in pork, according to a State Council document on developing the livestock industry. This will positively boost the international demand for soybeans and feed grains to fatten the hogs.

Pork industry was destroyed badly by African Swine Fever and resulted into reduction in herd size to almost half, increase in pork price and import also. China is currently rebuilding its Pork industry.

As per the plan, China also wants to meet about 85% of Beef and Mutton locally. Brazil is the main trade partner for China for beef, pork, and broiler.

China also desires to meet its 70% Dairy consumption locally.

As per thr China Customs, the import volume of dairy products in China reached 2.74 million tons (up by 7.8% compared to previous year) and the import value reached USD 10.65 billion, (up by 14.8% compared to previous year). Of the total dairy import in 2018, milk powder contributed nearly 70%. The milk powder imported to China includes infant formula milk powder, raw milk powder, etc., (China accounts for about quarter of world dairy import of dairy products).

China imports large quanity of dairy products due to lack of confidence by consumers in domestic products due to melamine scandal in year 2008 followed by expired milk scandal in year 2013.

Major dairy trade partners are New Zealand, Australia, European Union and USA.

As per the latest data from National Bureau of Statistics, China’s milk production in 2019 was 32.01 million tons (incresing at 4.1% on YOY). Milk production growth is also one of the highest in the world where the World milk production is growing at less than 2.0%.

The long term ambitious desire to meet 70% dairy consumption will widely affect the major trade partners. Also this will make the dairy exporting countries to look for other countries to balance this huge volume.

Currently, India is maintaining its tag of self-sufficiency in dairy consumption but need to look how it will take shape in the longer term as USA and through RCEP New Zealand are eyeing on the India’s Dairy Sector time and again.