Irish infant formula number two in growing China market
Sources in the Food Board said China imported over 171,280 tonnes of infant formula from January to October in 2016. The Irish dairy industry has benefited, with just under 26,000t of Irish infant formula going to China.
The import market leader is the Netherlands, with an estimated 61,000t trade.
However, Ireland’s strong position in the super premium category is reflected in a much higher US$16,725 per tonne price, compared to US$13,150 for formula from the Netherlands.
Imported brands are estimated to make up more than 50% of China’s infant formula market.
Infant formula imports increased 28% compared to the corresponding period in 2015, attributed mainly to falling sales of domestically produced formula, and also to relaxation of the country’s one-child policy.
The one-child policy was introduced in 1979 to reduce overpopulation, poverty and environmental degradation.
But it resulted in China losing around five million people from its labour force every year, which will continue for some years.
Births increased by 8% in 2016, to 17.86 million, the highest level since 2000, despite a fall in the number of women of childbearing age.
Between 17 and 20 million births per year are predicted by 2020, thanks to the new two-child policy, making infant formula a fast growing market.
January to October 2016 statistics from Bord Bia’s Shanghai office also indicated that China’s total dairy imports recovered substantially last year.
Chinese dairy imports remain behind the levels of 2014, when speculation drove imports well above market requirements.
But the outlook for dairy imports looks positive now, despite some slowdown in the overall economy, according to Suki Wu, in Bord Bia’s Shanghai office.
In 2016, whole milk powder imports increased 18%, to 352,000t. New Zealand supplied over 333,000t.
Skim milk powder imports decreased by 7%, to just over 161,000t. The main supplier again was New Zealand, with 98,000t.
Whey powder imports increased by 15.2%, to over 411,900t.
The US is the main supplier, accounting for 55%, followed by France with 11%.
Irish whey exports to China from January to October were estimated at 12,815t, down 14% from the corresponding period in 2015.
Liquid milk imports surged 50% in 2016, reaching 524,000t.
Supplying countries are Germany (34%), New Zealand (19.7%), and France (19.2%).
