China's milk surplus illustrates the unintended consequences of Beijing's efforts to boost food security in the dairy sector, Reuters writes. But a weakened economy and the fact that dairy products like cheese, cream and butter are among the more expensive ones have consumers cautious about buying them.
China flooded with milk. Demographic crisis has taken its toll
Milk consumption in China fell from 14.4 kg per capita in 2021 to 12.4 kg in 2022, the latest year for which data is available from the China Bureau of Statistics. At the same time, milk production in China, the world’s third-largest producer, rose to almost 42 million tonnes last year from 30.39 million tonnes in 2017, exceeding Beijing’s 2025 target of 41 million tonnes.
In addition, high costs and the legacy of the 2008 milk adulteration scandal that left at least six children dead and thousands hospitalized are limiting China’s export opportunities.
China’s dairy industry boomed after Beijing in 2018 called for more dairy farms and higher milk production, part of a broader plan to become more self-sufficient in food, Reuters said. The result was a rise in the number of farms and a rise in cattle imports. But smaller farms are now facing bankruptcy.