Vice President, Trade Policy and International Affairs. With China’s restocking of its swine inventory only about 9 months in, piglet prices rose through the first half of 2020 and remain high. Global Dairy Market Outlook Export Marketing The U.S. 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. Almost overnight China has become the second largest importer of dairy products after the USA. 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. 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 … Mexico, Southeast Asia, Canada, China and South America account for almost two-thirds of U.S. dairy exports, by value. Yet while the rest of the world is enjoying U.S. dairy products, China seems to be thumbing its nose. 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. ultrafiltered milk, extended shelf-life milk, etc. 1. Kirstie Clements: Misseltoe the line, boys. Dairy exports from the US to Southeast Asia have been growing “exponentially”, and will only continue to increase as exporters eye new segments and use the region as a stepping-stone to China while a trade war between the countries rages on. 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. 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. 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. 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. 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. Please try again. The likelihood of success is significantly enhanced by understanding regulatory requirements and market conditions. Non-compliance with China labeling regulations is one of the major reasons why products get stopped by the CIQ and customs. The guide starts with an introduction to the dairy sector introducing the major driving forces in this market. Dairy exports to China rebounded in May, with the nation seizing the second spot in U.S. dairy export destinations. (Xinhua/Chen Xu) This site has been specifically designed to assist potential dairy exporters to China and provide them with all the Copyright © 2020 The New Daily. Thousands of dairy cattle will be shipped to China while the Government reviews the issue of live animal exports. 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. Chinese Labeling Requirements. Through the first three quarters of 2020, the aggregate volume of major products (milk powder, whey, cheese, butter and … The registration with the AQSIQ is mandatory for manufacturers of dairy products. Dairy Permeate in China U.S. Center for Dairy Excellence Formulas & Recipes Marketing Events Registration Policy For more news on the trade battle between the U.S. and China, visit the articles below: African Swine Fever Could Spoil Milk Prices Milk powder, butter and cheese mainly. 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%. Get The New Daily free every morning and evening. 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. 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. Recently, batches of Polish dairy products took freight trains to China for the occassion of Single's Day shopping festival in the country. These include existing and emerging markets like Japan and China as well as emerging markets such … 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. The success of dairy companies Fonterra and A2 is largely underpinned by exports to China. Dairy exports to China reach new record, but higher tariffs are on the cards. 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. 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. In 2019, approximately 35 per cent of Australian dairy exports went to China, with 30 per cent to Southeast Asia. Purpose of export market development. Published 30 November 2018 Last updated 29 September 2020 — see all updates "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. 3. Politics has added yet another challenge. Exports go highwire . 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. 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. 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. By far the largest exporters are New Zealand and Australia which together account for almost 60 percent of dairy exports to China. 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. China is the main sales market for dry powder [in the world]," Belov added. Australian exports of cotton, timber and rock lobster have also been caught up in trade disruptions. 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 As relations continue to deteriorate between Australia and China, an export industry worth $1.1 billion a … If China were to apply the tariffs on wine, it is understood they would apply retrospectively from when the investigation was launched in August. The Chinese are looking for Holstein Friesian heifers that are strong, versatile, and that can thrive in moderate climates. Since 2014, China requires the registration of foreign plants producing dairy products for exports to China. As a result, exports of U.S. dairy to China dropped by more than 50% in 2019, according to CNBC. 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. 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. 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. 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. 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. 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. Electronic Trade Document Exchange (eTDE) System Information U.S. dairy export volume in milk solids equivalent (MSE) rose 5% in September, marking the 13th straight month of year-over-year increases. These are expected to increase by roughly 20 percent by 2022. 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. USDA reports that fluid milk accounts for more than 80% of dairy consumption in China, and U.S. export data shows U.S. producers rising to meet the demand, with skim milk exports up by over 4,000% by value and volume between January and July 2020 relative to the same period in 2019, setting U.S. fluid milk exports on target to match 2015 export quantities to China, despite the relatively small base volume. 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. The Chinese are importing dairy cattle, bull semen and processing infrastructure as they continue to grow and develop. 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. Apply online to export food products containing dairy like milk, cheese, butter and whey to China. by. Where the Chinese government had spent 2016-2020 collecting data on newer production techniques not yet well-established in China (e.g. 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. The latest data shows milk exports are up 14% in value compared to the same time last year. [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. 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. 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”). Australia exports more than $1 billion of dairy produce to China each year. TOM VILSACK: In 2018, we … 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. 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. Under ChAFTA, preferential tariffs can be withdrawn once a Special Agricultural Safeguard (SSG) is triggered. 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. 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. Dairy: Kiwi companies sold $4b worth of dairy products in China. Dairy Export Council. United States dairy farmers are warning that the country’s trade war with China is hurting the sector. The dairy industry will meet with agriculture minister David Littleproud in a phone hook-up from Canberra on Wednesday night, to discuss a possible threat to one of Australia’s key exports. But the United States has been left out of the China expansion. The SSG was triggered on red meat exports to China in July, representing record sales for the sector. 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. 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 … All Rights Reserved. As a result, China’s lists now include 499 beef, 457 pork, 470 poultry, 397 seafood, 253 dairy, and nine infant formula facilities. The guide starts with an introduction to the dairy sector introducing the major driving forces in this market. 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. 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. “The tariff volume for Australian milk powder in 2020 is 22,335 tonnes and exports to the end of September were 19,726 tonnes. China is the world's largest dairy importer and is the third largest export destination for U.S. dairy products. 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. 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. A notable exception to the growing consumer-oriented product exports is dairy, which experienced several setbacks in recent years. 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. It would be the first time the safeguard has been triggered since ChAFTA was signed in 2015. details of the exporting process can be found in our step by step guide to exporting dairy … Dairy Export Council (USDEC). Dairy Story Promoting Our Industry USA Origin Seals U.S. 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). 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. Since 2014, China requires the registration of foreign plants producing dairy products for exports to China. In fact, China’s self-sufficiency in milk production declined over the past years as consumers turned to dairy imports. Dairy Export Council (USDEC). In 2014, China issued Decree 145, which requires registration of … 80 per cent tariffs on Australian barley, Property market roars back to life on back of RBA rate cut. Non-compliance with China labeling regulations is one of the major reasons why products get stopped by the CIQ and customs. The registration with the AQSIQ is mandatory for manufacturers of dairy products. 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. Australia's Livestock Exporters now exports dairy heifers into China to meet growing international demand. But the United States has been left out of the China expansion. Published 30 November 2018 Last updated 29 September 2020 — see all updates Value basis: September export value rose 1.7% to $517.8 million. 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. “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. Dairy Story Promoting Our Industry USA Origin Seals U.S. 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. Trouble for dairy farmers started in 2018, when Donald Trump engaged in a protracted trade war with 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. Thousands of dairy cattle will be shipped to China while the Government reviews the issue of live animal exports. Subscribe for free to get the latest breaking news and analysis sent to your inbox. 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. ), the Phase One Agreement has loosened the handcuffs on U.S. dairy. 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. 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. 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. 3. Japan remains a vital trade partner for Australian exporters as a mature, high-value market with long-established business relationships. Cheese exports increased for the third straight year, up 3%. 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. 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 details of the exporting process can be found in our step by step guide to exporting dairy … 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. United States dairy farmers are warning that the country’s trade war with China is hurting the sector. Shaping September’s export growth were strong year-over-year sales of whey products, primarily destined for China, and better-than-expected cheese exports to Asia-Pacific markets. 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. She estimates that Chinese milk production grew between 2%-3% last year, while imports of whole milk powder and skim milk powder are consistently growing. 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. As a result, China’s lists now include 499 beef, 457 pork, 470 poultry, 397 seafood, 253 dairy, and nine infant formula facilities. 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. 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. 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. Chinese Labeling Requirements. But how long can the U.S. dairy industry expect to ride this recent wave of dairy demand in China, and does it apply across all dairy products? The key to understanding the Chapter 6 component is knowing that U.S. ag exports to China in 2017 were $19.5 billion. “The demand is evident around the world for high-quality, safe, affordable U.S. dairy products. 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]. 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. Politics has added yet another challenge. 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