China Dairy Industry's "Risks and Opportunities" —— New Dynamics and Profit Opportunities in the Global Dairy Landscape 11-25-2024

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.

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

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