China has a massive appetite for dairy
The USDA says global dairy prices remain relatively strong, largely tied to unprecedented buying from China.
In its biannual World Markets and Trade Report for dairy, the agency says for the first five months of the year China’s dairy imports increased by 17 percent to $6.4 billion. Demand continues for a broad range of products with skim milk powder imports up 50 percent through May from last year and forecast to reach a record level this year.
While the U.S. only makes up a small share of imported dairy products into China, it is the second-largest dairy export destination in terms of volume. U.S. exports through May to the country are up 75 percent compared to last year.