Impact of China dairy demand slowdown likely limited
A dairy analyst expects slowing Chinese demand to not be as bearish for markets as previously forecast.
Ben Laine with Rabobank tells Brownfield the potential for a mild slowdown in dairy demand from China, the world’s largest importer, is likely as their stockpiles remain strong at the same time their domestic production is increasing heading into 2022.
“Right now it could be a relief valve because of how tight markets have been, a little bit of a slowdown in China might not be devastating to these markets,” he says.
Laine says China is likely to cut back more on milk powders, which the U.S. is not a large supplier in, rather than whey.
“It’s going to work its way through global markets, it could be a little bit of a slowing in global trade,” he explains.
Laine spoke on his dairy market expectations following the release of Rabobank’s dairy quarterly report.