Reuters – New Zealand’s Fonterra said recently that China’s global dairy import volumes climbed 10.1 per cent in March after two consecutive months of declines, as the world’s second-largest economy reopens after coronavirus-induced lockdowns.
The jump in China dairy imports, however, may not be sustained as inventory levels are rebuilt.
New Zealand also reported a 13.6 per cent drop in dairy exports, dragged down by lower demand from Thailand, China and Saudi Arabia, according to global dairy data from Fonterra.
Fonterra’s New Zealand milk collection for April fell 2.6 per cent due to prolonged drought conditions. Australia’s milk production rose 7.1 per cent in March, helped by favorable weather, data released by the company showed.
Dairy companies including Fonterra and its smaller peer Synlait Milk have cut the price they pay farmers for milk for the upcoming season as virus-driven restrictions hammer demand.