In recent decades, developing countries have increased they contribution in the world milk production. This growth is mainly due to the increase in the number of animals destined to production but not to the productivity per head.

World milk production has increased by more than 59%, going from 530 million tons in 1988 to 843 million tons in 2018.

The countries with the largest milk deficits are China, Italy, the Russian Federation, Mexico, Algeria and Indonesia.

In many developing countries, poor quality of forage resources, diseases, limited access to markets and services (such as animal health, credit and training) and the low genetic potential of the dairy animals’ limit milk production. In addition, many developing countries have hot or humid weather that are unfavourable for dairy farming.

Dairy sector in China

In 2021, China has a production of 36.8 million metric tons of cow’s milk. This was the highest amount reached in recent years. National milk production fluctuates between 30 and 34 million tons per year in the last decade.

China is the fourth largest dairy producing country in the world; and the second largest in Asia. Although the estimated number of dairy cows has decreased in the country, the production volume per cow is expected to increase from about 4,600 kilograms in 2017 to more than 5,500 kilograms in 2024. Regardless of improving productivity, China still relies heavily on dairy imports. In 2018, China imported whey, packaged milk and whole milk powder in volumes of more than 500 thousand metric tons each. New Zealand, Australia, the United States, Germany and France are among the main suppliers of dairy products for the Chinese market.

Main milk producers’ companies in China

Yili Group, is the largest dairy producer in China. It is the number one Chinese company in UHT milk and milk powder, as well as being the most valuable Chinese food and dairy brand according to Milward Brown’s BrandZ ranking. Mengniu Dairy is Yili Group’s main competitor and is based in the same region of Mongolia. It should be noted that the province of Inner Mongolia is one of the most producing locations. Bright Dairy and some newer companies such as Shengmu are other well-known and well-capitalized market leaders.

Resources:

• https://www.ocla.org.ar/contents/news/details/11506495-china-importaciones-de-lacteos-ano-2017
• https://www.statista.com/statistics/275794/milk-production-in-china/

Links to the main milk producers’ companies in China:

• https://hmong.es/wiki/Yili_Group
• https://www.mengniu.com.cn
• http://www.brightdairy.com
• http://www.youjimilk.com