Agricultural powerhouse: China’s homegrown food boom

Thousands of dairy heifers have been raised in China to lift the nation’s milk production to 40 billion litres.

China has become an agricultural powerhouse, as it winds back imports and strives to boost food security for its 1.4 billion residents.

Growth in Chinese milk production has been staggering, surging from 14 billion litres in 2002 to 40 billion litres today – twice New Zealand’s output. Market analysts say that growth in combination with a slowing Chinese economy has played a big part in the 45 per cent slump in global dairy prices over the past 18 months.

Fonterra NZ chief executive Miles Hurrell recently told Kiwi suppliers that “Chinese processors have been left with no choice but to spray dry their surplus milk, leading to high in-market stocks of whole milk powder.”

China’s cutback in dairy imports has led Fonterra to cut Kiwi farmers’ farmgate prices to unsustainable levels and flood the Australian market.

Peter Hunt, The Weekly Times, 22 September 2023.

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