After falling sharply in January, Chinese dairy imports rebounded strongly in February.

In January, as the COVID-19 virus began to spread in China, there was a notable decline in demand (-28%) for dairy imports from Chinese buyers. However, this fall in demand recovered strongly in February, with import volumes up an impressive 37% year on year.

New figures released this week by Chinese trade authorities show the country imported close to 630,000t of dairy product in the first two months of 2020.

Although this is down 2% year on year, the volume of trade is much better than had been expected given the challenges posed by COVID-19. Chinese imports of whole and skimmed milk powder (WMP and SMP) were down 10% year on year to a combined 286,000t.

However, there was a significant increase in the volume of cream (+31%), butter (+67%), cheese (+15%) and packed UHT milk (+20%), albeit at smaller volumes than bulk milk powders. Importantly, much of this product is sourced from Europe, meaning that trade flows are still operational.

Irish exports of infant formula to China were down 10% for January and February, but exports of certain products like UHT milk, cream, skimmed milk powder, cheese and whey powder are all up.