Summary:
Faced with drastic fluctuations in international milk prices, changes in local demand patterns, and frequent adjustments to international trade policies, the China Dairy Industry is experiencing an unprecedented difficult period. According to the latest data from the Ministry of Agriculture and Rural Affairs, the purchase prices of raw milk in major milk-producing provinces in early November 2024 significantly declined compared to the same period last year, resulting in a high overall industry loss ratio. However, amidst this challenge, the China Dairy Industry has demonstrated strong resilience and adaptability, introducing new elements to the international dairy landscape. CCM market insights and CCM reports have also provided valuable data and analysis on these industry dynamics.
Current Challenges and Resilience of the
China Dairy Industry
At the recently held 5th DeLaval Smart Farming Summit, industry
experts and leaders examined the challenges faced by the China dairy industry.
These include drastic fluctuations in international milk prices, changes in
local demand patterns, and frequent adjustments to international trade
policies. According to the Ministry of Agriculture and Rural Affairs, raw milk
purchase prices significantly declined in November 2024 compared to the
previous year, resulting in high industry loss ratios. Despite these
challenges, the China Dairy Industry has shown resilience and adaptability,
introducing new dynamics to the international dairy landscape, supported by
insights from CCM market reports.
Market Opportunities and
Global Dairy Supply Impact
The global raw milk price competitive landscape is evolving.
Traditional dairy exporting countries like the EU, UK, US, New Zealand, and
Australia have experienced slowdowns or declines in raw milk production.
Meanwhile, China's dairy product imports have adjusted due to price factors,
providing opportunities for domestically produced dairy products. This shift
favors the recovery of China's dairy farming industry and impacts the global
dairy supply and demand relationship. With tightening global dairy export
supplies, the China Dairy Industry's recovery and growth will increasingly
influence the global dairy market, as illustrated by CCM import analysis and
agriculture database trends.
Technological Innovation and
Sustainable Development
China's dairy farming technology innovation and frontier
research have introduced new growth points to the global dairy market. The
application of AI technologies like big data analysis, predictive models, and
intelligent decision support systems has improved farm operational efficiency
and reduced production costs. Examples like DeLaval's DeepBlue model set
benchmarks for the global dairy industry. Additionally, China's exploration in
low-carbon dairy cow breeding, led by research teams at China Agricultural
University, aims to balance emission reduction and efficient production,
promoting the green transformation of the global dairy industry. These
technological advancements and sustainable practices reshape the domestic
market and impact the global dairy market.
China's Growing Influence
and Lessons for the Global Dairy Market
The China Dairy Industry's changes and innovations have
influenced both domestic and global markets. With increasing consumer demand
for high-quality dairy products and ongoing breakthroughs in technology and
sustainable development, China is becoming a significant player in the global
dairy market. The industry's adaptability and innovation capabilities provide
valuable lessons for the global dairy market, demonstrating flexibility in
strategy adjustment amidst challenges. These experiences contribute to the
China Dairy Industry's recovery and growth, offering useful references for
global dairy peers. The "risks and opportunities" of the China Dairy
Industry have become a focal point in the global dairy market, injecting new
vitality and momentum through its technological and sustainable exploration.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
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