China butter imports expected to increase in 2024
Higher domestic consumption driving growth
5 September 2024
1 minute read
By: In 2024, China's butter imports are projected to increase due to higher domestic consumption although growth may be dampened, according to a recent USDA Dairy World Markets and Trade report.
The demand for butter, including cream and anhydrous milk fat (AMF), is growing across various sectors such as bakery products, yogurt, ice cream, and food services. High-end food processors, especially premium bakeries, prefer to use butter over plant-based alternatives. This increase in demand has led to a 10 percent increase in butter imports in the first half of 2024, particularly from New Zealand and the EU
China's domestic butter production is forecast to see slight growth due to increased dairy processing activities amid a surplus in fluid milk production. However, the quality of domestically produced butter and cream is often inadequate for high-end uses, prompting continued reliance on imported products for premium applications. Consequently, China maintains substantial butter imports, predominantly from New Zealand accounting for almost 90% of the market share in early 2024.
