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August 14, 2008

China is world's fastest growing dairy market: Opportunities for U.S. dairy companies.

Analysis of: Kiwi giant aims to milk the China cash cow | www.nzherald.co.nz
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Robert Cropp, Professor EmeritusRobert Cropp
Professor Emeritus, University of Wisconsin
Implications: China is committed to improve the nutrition of its population and dairy products are a major source. China is focusing on expanding its dairy farming and milk production. China is struggling to keep up with the growth in its demand for milk and dairy products. 

Analysis: China is committed to increase the nutritional level of its people and looks to milk and dairy products as one of the major food sources. China is committing resources to expand its dairy farm sector and milk production, but demand is currently out stripping domestic production. Fonterra of New Zealand considers China as a major growth market not only for dairy exports but investments in China and partnerships with dairy and food companies in China. Whole milk and skim milk powders as well as milk proteins are important dairy products in China. U.S. dairy cooperatives and other dairy companies are major producers of these products at competitive world prices. China is already the third largest world market for U.S. dairy products behind Mexico and Canada. 


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