Thousands of dairy cattle will be shipped to China while the Government reviews the issue of live animal exports. Thousands of dairy cattle will be shipped to China while the Government reviews the issue of live animal exports. In 2019, approximately 35 per cent of Australian dairy exports went to China, with 30 per cent to Southeast Asia. If the U.S. industry waits too long to engage, even more market share may be lost to competitors like the European Union, or if the Chinese government has its way, Chinese suppliers themselves. Global Dairy Market Outlook Export Marketing The U.S. Beyond summer 2021, the future for U.S. whey to China is more opaque; as China levels off its swine inventory restocking, China’s feed production is projected to rise for the rest of 2020 and into 2021, consistent with China’s goals of becoming more self-reliant in a wide variety of commodities, including dairy. In order to facilitate China’s aggressive restocking targets, the Chinese government has excluded U.S. whey from its retaliatory tariffs – one of relatively few U.S. agricultural products that received such an exclusion. This creates a scenario where swine inventory is flattening while China’s feed supplies are rising, on top of USDA’s reporting that major Chinese swine companies are shifting towards vertical integration of their supply chains as part of their ASF mitigation strategies. Exports go highwire . With greater self-reliance in producing whey for animal feed in China, the Chinese government may reinstate tariffs on U.S. whey and discourage Chinese swine operators from importing it. 3. As a result, China’s lists now include 499 beef, 457 pork, 470 poultry, 397 seafood, 253 dairy, and nine infant formula facilities. Russian companies could get a green light to export new categories of dairy products – whole and skim milk powder - to China already in autumn of 2020. Australian exports of cotton, timber and rock lobster have also been caught up in trade disruptions. For more news on the trade battle between the U.S. and China, visit the articles below: African Swine Fever Could Spoil Milk Prices The Chinese are importing dairy cattle, bull semen and processing infrastructure as they continue to grow and develop. The success of dairy companies Fonterra and A2 is largely underpinned by exports to China. New government figures show Australia sold a record amount of whole milk powder to China this year, enough to trigger a 10 per cent tariff on exports for the remainder of 2020. Australian dairy exports to China have grown to be worth more than $1 billion a year, and so far the industry remains unaffected by souring trade tensions between the two nations. These are expected to increase by roughly 20 percent by 2022. Dairy exports to China rebounded in May, with the nation seizing the second spot in U.S. dairy export … In 2014, China issued Decree 145, which requires registration of … Milk powder, butter and cheese mainly. Products performing at 2018 levels through the end of July 2020 are whey protein concentrate, dried whey, infant formula, and NFDM, likely due to China’s continued restocking of its swine herd post-African Swine Fever outbreak and eased regulatory restrictions that were resolved under the U.S.-China Phase One Agreement. The latest data shows milk exports are up 14% in value compared to the same time last year. IDFA reported: Possible return to 2018 levels of dairy exports to China, pending year-end performance and U.S.-China relations: U.S. dairy exports to China in July may not have reached June 2020 levels, but the United States continues to see sustained recovery of its dairy exports to China, as July 2020 dairy exports to China far exceeded July 2019 exports to China, creating a pathway for U.S. dairy exports to China to rebound to 2018 levels under continued positive market conditions. Now, a change to trading conditions for whole milk powder is expected by the Department of Agriculture Water and Environment in accordance with trade rules. Dairy Export Council (USDEC). Dairy exports to China rebounded in May, with the nation seizing the second spot in U.S. dairy export destinations. Despite reaching the quota in late December 2019, the safeguard has never been triggered on Australian milk powder under ChAFTA. Despite common U.S. industry sentiment, opportunities exist for U.S. exports of fluid milk to China. A chunk of that was due to China and the melamine scandal in late 2008, but even if we exclude China… U.S. dairy exports grew rapidly between 2009 and 2013, led by nonfat dry milk and whey. This has had an impact on whey imports, and U.S. whey exports to China were just under 11,000 tons, down 52% with steep declines in sales of whey protein concentrate and modified whey products. Total U.S. whey exports grew 29% in August, an increase of 11,281 tons; U.S. shipments to China for the month jumped 318% or by 17,212 tons. Chinese Labeling Requirements. Trends emerging Shipments to the region grew by nearly 100,000 tonnes last year over 2017 thanks to strong orders for whey ingredients, milk powder and cheese, which all reached new all-time records. And how will this one finish? Recently, batches of Polish dairy products took freight trains to China for the occassion of Single's Day shopping festival in the country. As a result, exports of U.S. dairy to China dropped by more than 50% in 2019, according to CNBC. To determine whether a manufacturer/processor is registered to export, please consult the website of the China Certification and Accreditation Administration (CNCA). Published 30 November 2018 Last updated 29 September 2020 — see all updates Before you export dairy products to China: read this overview for guidance on requirements and exceptions; check our Manual for Importing Country Requirements (Micor) for full details of China’s dairy import requirements. 80 per cent tariffs on Australian barley, Property market roars back to life on back of RBA rate cut. Apply online to export food products containing dairy like milk, cheese, butter and whey to China. by. The one bright light in recent years was exports, particularly to China, says Tom Vilsack, the head of the U.S. Australian dairy exports to China have grown to be worth more than $1 billion a year, and so far the industry remains unaffected by souring trade tensions between the two nations. Mexico, Southeast Asia, Canada, China and South America account for almost two-thirds of U.S. dairy exports, by value. At +318%, it was a significant month-to-month surge that could be a signal of an increase in U.S. whey market share thanks in part to the Phase I trade agreement. ALE Now Exports Dairy Heifers into China to Meet Growing Demand China is becoming a major player for the Australian dairy export industry and Australia's Livestock Exporters is well positioned to meet this demand. Dairy Story Promoting Our Industry USA Origin Seals U.S. Vice President, Trade Policy and International Affairs. New Zealand's dairy section led the rise in goods exports in November 2019 as dairy exports to China contributed to a record monthly high, according to a latest Stats NZ report released on Thursday. ultrafiltered milk, extended shelf-life milk, etc. ), the Phase One Agreement has loosened the handcuffs on U.S. dairy. These include existing and emerging markets like Japan and China as well as emerging markets such … U.S. dairy product exports were virtually flat on both a volume and value basis in October, undermined by a continued loss of sales to China, according to Al Levitt, vice president of communications and market analysis at the U.S. TOM VILSACK: In 2018, we … The key to understanding the Chapter 6 component is knowing that U.S. ag exports to China in 2017 were $19.5 billion. U.S. exports of dairy products to the European Union (EU), China, and Chile are subject to importing country listing requirements for manufacturers/processors as a precondition for market access. Kirstie Clements: Misseltoe the line, boys. If China were to apply the tariffs on wine, it is understood they would apply retrospectively from when the investigation was launched in August. It comes as Victorian timber exports to China have been stopped and winemakers prepare for the possibility an interim tariff could be placed on Australian wine, while China investigates dumping and countervailing claims. Trouble for dairy farmers started in 2018, when Donald Trump engaged in a protracted trade war with China. As a result of these and other factors, demand for U.S. whey is likely to remain strong for the remainder of 2020 and into the first half of 2021. In addition to growing per capita consumption of dairy in China reported by the U.S. Department of Agriculture (USDA), there is a convergence of several short-term positive indicators for two dairy products in particular: The next 12 months of U.S. whey exports to China are trending up based on a number of indicators. Exports go highwire . The Chinese government’s aggressive plans to restock by the end of 2020 are behind target based on market intelligence from USDA and are realistically likely to continue into the first half of 2021.[1]. Southeast Asia is now ahead of China and behind only Mexico as the second-biggest export destination for American dairy exports, both in terms of tonnage and value. Under the ChAFTA, preferential tariffs would be reinstated at the end of the calendar year. Through the first three quarters of 2020, dairy exports were up 15.8% by volume. After signing a $20m milk export contract at Gulfood Dubai expo earlier this year, Vinamilk said the official export of sweetened condensed milk to China is a positive signal for the company as well as the Vietnamese dairy industry in general, contributing to Vietnam’s export turnover in the situation of slowing export in the first quarter of 2020 due to the Covid-19 pandemic. Despite trade policy challenges in China and other markets, U.S. United States dairy farmers are warning that the country’s trade war with China is hurting the sector. All rights reserved. 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Grated cheese exports to China between January and July 2020 are up 126% by value and 138% by volume over 2019 levels, and despite growing off a small base quantity, butter and fats and oils derived from milk are up 10,584% by value and 4,857% by volume between January and July this year over the same period last year. 1250 H Street, NW, Suite 900 Washington, DC 20005, https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Livestock%20and%20Products%20Annual_Beijing_China%20-%20Peoples%20Republic%20of_08-15-2019, Privacy U.S. export volumes are recovering to China. It is clear that U.S. dairy exporters to China have significant opportunities in the short term and the time is now to take advantage of this growing market. Australia's Livestock Exporters now exports dairy heifers into China to meet growing international demand. Electronic Trade Document Exchange (eTDE) System Information You owe Mummy a tea set, Artificial intelligence is the latest weapon in hospitality wage-theft war, Michael Pascoe: Federal government pocketing interest on states’ debt, Should kids be first or last in line for a COVID vaccine? Dairy Export Council. D035 Exports by Country of Destination – Summarized Report D034 Exports of Products to All Countries If you are unable to access files, please contact the Canadian Dairy Information Centre to request an alternative format. U.S. export volumes are recovering to China. Dairy Story Promoting Our Industry USA Origin Seals U.S. By far the largest exporters are New Zealand and Australia which together account for almost 60 percent of dairy exports to China. Here’s what we know, Australia is just the latest victim of China’s bullying tactics, The year 2020 listed among the world’s top three hottest years on record, Pandemic worsens the digital divide: The Australians left behind by a cashless society, The Queen cancels Christmas to do her part for taming COVID-19. (Xinhua/Chen Xu) Dairy exports to Asia Greater China (including China, Hong Kong and Macau) is Australia’s largest dairy export market, accounting for 30% of exports by volume. In fact, China’s self-sufficiency in milk production declined over the past years as consumers turned to dairy imports. 1. Dairy Export Council (USDEC). As relations continue to deteriorate between Australia and China, an export industry worth $1.1 billion a … The guide starts with an introduction to the dairy sector introducing the major driving forces in this market. Earlier this year, China put 80 per cent tariffs on Australian barley, before a number of Australian abattoirs and two grain exporters were suspended from trading. Apply online to export food products containing dairy like milk, cheese, butter and whey to China. Non-compliance with China labeling regulations is one of the major reasons why products get stopped by the CIQ and customs. As part of its plans, China’s provincial-level governments are offering incentives for expanded capacity in Chinese swine farms, creating targets for China’s swine inventory to reach not only pre-ASF levels, but eventually to exceed them. A chunk of that was due to China and the melamine scandal in late 2008, but even if we exclude China, imports by everyone else were up 6.6%. China to Impose Tariffs on Nearly All US Dairy Imports China’s finance ministry announced on Tuesday that it will impose retaliatory tariffs next week on nearly $60 billion worth of U.S. imports in reaction to the Trump administration’s plans to place 10-percent duties on … Over the first five months of the year, the value of U.S. dairy exports is 12 percent ahead of the same period as last year, while volume growth is tracking 10 percent ahead of the same period. This site has been specifically designed to assist potential dairy exporters to China and provide them with all the As a result, China’s lists now include 499 beef, 457 pork, 470 poultry, 397 seafood, 253 dairy, and nine infant formula facilities. Dairy exports to China reach new record, but higher tariffs are on the cards. Volume basis: U.S. dairy export volume (milk solids basis) grew 5% in September (versus the previous year). Politics has added yet another challenge. It’s not that China isn’t importing dairy products, USDEC reports Chinese imports of dairy goods is up 13% in the first quarter compared to the same period in 2018. Published 30 November 2018 Last updated 29 September 2020 — see all updates New government figures show Australia sold a record amount of whole milk powder to China this year, enough to trigger a 10 per cent tariff on exports for the remainder of 2020. “The tariff volume for Australian milk powder in 2020 is 22,335 tonnes and exports to the end of September were 19,726 tonnes. Politics has added yet another challenge. This 41-page publication is a step-by-step guide of all the stages a company has to go through when exporting dairy to China, including links to all the most relevant standards and regulations. New United States Dairy Sanitary Certificate to China Effective October 13, 2020 Training Webinar Video Training Webinar Slides (pdf) USDA’s Agricultural Marketing Service (AMS) through its Dairy Grading Branch offers export certification services to assist in the exportation of dairy products. Value basis: September export value rose 1.7% to $517.8 million. Global Dairy Market Outlook Export Marketing The U.S. The USDEC president and CEO says the U.S. dairy industry is in the export business "to stay and to win." According to Mary Ledman, global dairy sector strategist at Rabobank, 2019 was a strong year in China for dairy consumption. Given China’s aggressive timeline and goals for restocking its swine inventory, if dairy trade is not a target of potential changes in U.S.-China relations, IDFA is optimistic for China’s continued out-performance in 2020 relative to 2019. Get The New Daily free every morning and evening. Possible return to 2018 levels of dairy exports to China, pending year-end performance and U.S.-China relations: U.S. dairy exports to China in July may not have reached June 2020 levels, but the United States continues to see sustained recovery of its dairy exports to China, as July 2020 dairy exports to China far exceeded July 2019 exports to China, creating a pathway for U.S. dairy exports to … Although it is true that 2019 dairy exports to China were significantly lower than previous years, the demand predictions and year-to-date data in all cheese and butter categories relative to 2019 demonstrate U.S. exporters are benefitting from China’s growing preference for a more western diet. [1] Source: https://apps.fas.usda.gov/newgainapi/api/Report/DownloadReportByFileName?fileName=Livestock%20and%20Products%20Annual_Beijing_China%20-%20Peoples%20Republic%20of_08-15-2019. United States dairy farmers are warning that the country’s trade war with China is hurting the sector. The Chinese are importing dairy cattle, bull semen and processing infrastructure as they continue to grow and develop. These issues will only be exacerbated if the United States pursues a strategy of economic “decoupling” from China, meaning separating the world’s two largest economies. Overall dairy exports were $6.03 billion in 2019, up 8% from 2018. China is the main sales market for dry powder [in the world]," Belov added. For example, Phase One removed requirements for U.S. dairy exporters to submit technical questionnaires containing processing information prior to registering for export; the agreement also updated the list of registered U.S. dairy facilities, which had been on hold for two years; and established defined labeling and regulatory parameters for U.S. fluid milks so that the Chinese government could no longer block these products as falling outside Chinese standards. The guide starts with an introduction to the dairy sector introducing the major driving forces in this market. But they’ve been buying from everywhere but the U.S. How do pandemics usually end? In recent weeks, China updated its lists of U.S. facilities eligible to export beef, pork, poultry, seafood, dairy, and infant formula products to China. In recent weeks, China updated its lists of U.S. facilities eligible to export beef, pork, poultry, seafood, dairy, and infant formula products to China. China is the world's largest dairy importer and is the third largest export destination for U.S. dairy products. The US Dairy Export Council reported earlier this month that exports to China had fallen 43 per cent since the tariffs went into effect last July. If U.S. ag exports in 2021 increase by the $19.5 billion minimum, that would mean that U.S. ag exports to China in 2021 will be at least $39 billion. This was announced by Roman Chekushev, director of the Russian Agricultural Ministry's export development department recently during an online conference, Russian magazine Agroinvestor reported. If China only imports the minimum amount in 2020 and 2021, the total value of imports over the two-year period will be $71 billion. By far the largest exporters are New Zealand and Australia which together account for almost 60 percent of dairy exports to China. Charities slammed by triple threat as coronavirus damage takes its toll, Vegans rising: Australia second in the world for veganism as Gen Z snubs lab-grown meat, Industry super funds to invest $33 billion in job creation, Victorian real estate agents push back against calls to block rent reductions, Call for diversity as Aussie model with disability prepares for catwalk at New York Fashion Week, interim tariff could be placed on Australian wine, investigation into claims the Australian industry was subsidised, and its winemakers sold wine to China below the cost of production. Where the Chinese government had spent 2016-2020 collecting data on newer production techniques not yet well-established in China (e.g. Australian dairy exports to China have grown to be worth more than $1 billion a year, and so far the industry remains unaffected by souring trade tensions between the two nations. Vietnam Dairy Products JSC expects to start exporting milk products to China in mid-October for the first time as it looks to tap into the world’s second-biggest dairy market for growth. With the Phase I agreement in place, growing Chinese demand and resurgent demand for whey, U.S. dairy export volumes to China are recovering to pre-retaliatory tariffs, pre-African Swine Fever levels. China is Australia's number one dairy export market and continues to represent significant opportunities for both new and existing dairy exporters. U.S. dairy product exports were virtually flat on both a volume and value basis in October, undermined by a continued loss of sales to China, according to Al Levitt, vice president of communications and market analysis at the U.S. In the first half of this year alone, U.S. dairy exports to China fell 54%, largely from the trade war that’s engulfed scores of American industries. Through the first three quarters of 2020, the aggregate volume of major products (milk powder, whey, cheese, butter and … Cheese exports increased for the third straight year, up 3%. U.S. dairy export volume in milk solids equivalent (MSE) rose 5% in September, marking the 13th straight month of year-over-year increases. Chinese Labeling Requirements. With the Phase I agreement in place, demand from China is being fueled by whey, recovering to pre-retaliatory tariff and pre-African swine fever levels, and an expansion of food-grade whey proteins. An import value of almost EUR 4 billion and an average annual growth rate of approximately 45% during the period from 2009 to 2013 constitute a solid base from which to continue growth in both value and variety. It may surprise you, but the last time we had a global recession (2009), global milk-equivalent imports were up more than 10% from 2008. Last year, sales of whole milk powder to China were worth about $156 million. © 2020 International Dairy Foods Association. “As a result, the tariff on Australian milk powder exports to China for the remainder of 2020 will increase from 5 per cent to 10 per cent once the tariff volume is reached,” the spokesman said. Please try again. This 41-page publication is a step-by-step guide of all the stages a company has to go through when exporting dairy to China, including links to all the most relevant standards and regulations. Now, a change to trading conditions for whole milk powder is expected by the Department of Agriculture Water and Environment in accordance with trade rules. Now, a change to trading conditions for whole milk powder is expected by the Department of Agriculture Water and Environment in accordance with trade rules. Dairy Export Council President and CEO Tom Vilsack sees many reasons for optimism in 2020 and beyond. Since 2014, China requires the registration of foreign plants producing dairy products for exports to China. “The demand is evident around the world for high-quality, safe, affordable U.S. dairy products. Almost overnight China has become the second largest importer of dairy products after the USA. It may surprise you, but the last time we had a global recession (2009), global milk-equivalent imports were up more than 10% from 2008. "Dry powder could become a top priority in terms of Russian dairy exports to China, as we have it in growing quantities in Russia thanks to the modernisation of cheese plants. With the strong demand for fluid milk among Chinese consumers, the need to increase imports, the removal of regulatory barriers on U.S. dairy, and the Chinese consumer’s favoritism of imported dairy products due to historic food safety crises like melamine, U.S. fluid milk is well positioned to grow in the near term before China’s domestic production reaches capacity to meet domestic demand. Dairy Australia helps to improve and maintain access to overseas markets to maximise potential returns to farmers. But the United States has been left out of the China expansion. Copyright © 2020 The New Daily. Yet while the rest of the world is enjoying U.S. dairy products, China seems to be thumbing its nose. USDA further reports that ultra-heat treated (UHT) milk imports are expected to continue increasing, and U.S. exporters have new opportunities to seize those under the commitments achieved in the Economic and Trade Agreement with China (“Phase One”). Based on 2019 exports, we would see the volume likely reached in late October or early November.”. The SSG was triggered on red meat exports to China in July, representing record sales for the sector. Meanwhile, winemakers fear China could introduce tariffs that would apply to the trade for the 12 to 18-month investigation into claims the Australian industry was subsidised, and its winemakers sold wine to China below the cost of production. The Chinese are looking for Holstein Friesian heifers that are strong, versatile, and that can thrive in moderate climates. Above and beyond whey and fluid milk opportunities in the next year, USDA also predicts cheese and butter imports will continue to increase due to strong demand from the Chinese foodservice and bakery sectors as Western foods grow in popularity. In fact, China’s self-sufficiency in milk production declined over the past years as consumers turned to dairy imports. U.S. export volumes of SMP/NDM topped 700,000 tons for the second straight year in 2019. Last week, IDFA reported that U.S. dairy exports to China in July were still trending positively relative to 2019, citing China’s restocking of its swine inventory after an African Swine Fever (ASF) outbreak in 2018 and 2019 decimated its herd. The registration with the AQSIQ is mandatory for manufacturers of dairy products. All Rights Reserved. There was an error submitting the form. Dairy exports are explosive. The likelihood of success is significantly enhanced by understanding regulatory requirements and market conditions. If U.S. ag exports in 2020 increase by the $12.5 billion minimum, that would mean that U.S. ag exports to China in 2020 will be at least $32 billion. In 2017, USDA AMS Dairy Program was recognized by China as an accepted third party certification body for conducting audits of dairy and infant formula plants. Dairy exporters have hit record milk powder sales to China this year, but are about to face a doubling in tariffs under the China Australia Free Trade Agreement (ChAFTA). Non-compliance with China labeling regulations is one of the major reasons why products get stopped by the CIQ and customs. A department spokesman said triggering the safeguard was an indication of China’s strong demand for milk powder, which is often used in food manufacturing. A notable exception to the growing consumer-oriented product exports is dairy, which experienced several setbacks in recent years. 1. EVANSVILLE, Ind., Jan. 17 (UPI) -- With the phase one trade deal signed this week between the United States and China, the U.S. dairy industry hopes to increase milk exports. Subscribe for free to get the latest breaking news and analysis sent to your inbox. Fresh milk exports to China have picked up after a COVID-19 slump Australia's biggest macadamia exporter says China can be a volatile market, and has made sure they can divert their product elsewhere Before you export dairy products to China: read this overview for guidance on requirements and exceptions; check our Manual for Importing Country Requirements (Micor) for full details of China’s dairy import requirements. Exporters as a mature, high-value market with long-established business relationships the rest of the.. Analysis sent to your inbox since 2014, China ’ s self-sufficiency in milk production declined the! Cattle will be shipped to China each year market roars back to life on back of RBA rate cut ``! Australian exporters as a result, exports of cotton, timber and rock lobster have also caught! Back to life on back of RBA rate cut to Southeast Asia a vital trade partner for Australian powder! Were up 15.8 % by volume percent of dairy cattle, bull semen and infrastructure. 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