In a huge positive for global dairy markets, China’s appetite for dairy has not been diminished by the COVID-19 pandemic. New data released this week shows China imported just over 260,000t of dairy product in March, which was up 10%, or close to 24,000t, on the same month last year.

After a difficult January and February for import volumes, Chinese imports of milk powder rebounded strongly in March.

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Imports of whole milk powder (WMP) were up 7% year on year at just under 48,000t, while skimmed milk powder (SMP) imports surged 20% to just under 25,000t. Whey powder imports also rose by 20% in March to hit 43,000t, while infant formula imports were up 7% to just under 30,000t.

Interestingly, Chinese demand for butter and cheese almost doubled in March. Butter imports were up 82% year on year to just over 10,000t, while cheese imports jumped 54% in March close to 12,000t.

This strong rebound in March imports makes up for the drop-off in demand in January and February and leaves Chinese dairy import demand for the first quarter of 2020 in a relatively healthy position. In total, China’s first quarter (Jan-Mar) dairy imports stand at just under 892,000t, which is 1% ahead of last year.

Lower imports of WMP (-3%) and SMP (-16%) in the first quarter are offset by surging demand for butter (+70%), cheese (+26%), whey powder (+10%) and fresh dairy products (+5%). The resurgence in Chinese demand should boost dairy market sentiment.