New Zealand’s Fonterra says its China 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 the inventory levels are rebuilt, Fonterra says.
The world’s largest dairy exporter also reported a 13.6 per cent drop in domestic milk exports, dragged down by lower demand from Thailand, China and Saudi Arabia.
Its domestic milk collection for April fell 2.6 per cent due to prolonged drought conditions, while its Australia milk production rose 7.1 per cent in March, helped by favourable weather.
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.