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Following a sluggish opening quarter to 2017, Chinese imports of dairy commodities regained some ground last month.
In volume terms, Chinese dairy imports for April stood close to 186,000t, which represents a 7% increase compared with the same month last year. In March this year, Chinese dairy import volumes were back as much as 16% year on year.
The improvement in import volumes was driven by continued strong demand for infant formula and whey powder, which has been a feature of the market since the beginning of the year. Chinese imports of infant formula increased 34% in April this year, to a total of almost 21,100t.
This brings cumulative infant formula imports from January to April in 2017 to more than 75,000t, which is 23% ahead of last year.
Similarly, imports of whey powder to China have performed strongly this year. In April, whey powder shipments to China were 24% ahead of last year at 41,400t, while January to April shipments of whey powder to China are up 14% year on year to just under 165,000t.
In contrast, Chinese demand for whole milk powder (WMP) has been softer in the opening months of 2017. From January to April, Chinese imports of WMP are down 3% year on year to a total of almost 227,000t, as higher pricing curtails stock building. WMP accounts for more than a quarter (27%) of all Chinese dairy imports.
Futures markets
On dairy futures markets, which can act as a decent bell weather to buyer sentiment, contract prices for milk powders have been generally steady. Futures prices for WMP, which are traded in New Zealand, saw marginal movement in the last week, with July, August and September contract prices for WMP declining less than 1%.
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