Friday, November 16, 2018
 China Imports 62% More Whole Milk Powder  

New Zealand whole milk powder (WMP) exports to China totaled 124,938 tons in January 2014, up from 76,963 tons at the same time last year. This increase is part of a seasonal swell as importers look to take advantage of the lower tariff rates that are on offer early in the year as part of the NZ:China Free Trade Agreeement.

Past years have a similar trend of increasing WMP exports to China early in the year, which typically subside in the middle of the year. However, the amount of exports to China this January is very large and indicative of stronger demand.

Official Chinese milk production numbers show a drop of 5.7% in 2013 compared to 2012. Other industry figures put the actual drop as high as double that. Official figures show an atypical drop in the number of cows by nearly 2 million which supports the possibility of a larger drop in milk production.

The NZ China Free Trade Agreement allows for a limited number of exports from NZ to receive a preferential tariff rate. In 2014 the quota allows for 127,309 tonnes of milk powder to enter China at the preferential tariff rate of 4.2% rather than the standard rate of 10%. The quota volume does increase each year, but the rate of expansion in the quota is much less than the growth in imports of dairy products into China. Therefore the quota has been exhausted earlier and earlier in the year as the volume of trade has increased significantly in the last few years—WMP exports to China for January 2014 is roughly four times the amount in January 2010.

Source: Dairy Trader

Posted on Thursday, February 27, 2014 (Archive on Thursday, March 06, 2014)
Posted by  Contributed by