China interested in benefiting from Pakistan’s dairy market

The yield and quality of dairy products in Pakistan is very high and has huge potential. We are willing to explore dairy cooperation based on the belt and Road Initiative and have had some communication with them.

We’d also love to learn more about Pakistan’s dairy industry and actively participate in it,” Li Yunjie, Overseas Business Manager of Bright Dairy & Food co., ltd, one of the largest dairy groups in China, said to Gwadar Pro at the China International Import Expo (CIIE).

Chinese enterprises welcome Pakistani milk to enter the Chinese market, which will benefit Pakistan’s economic development, industrial upgrading and industrial chain extension.

At the same time, it will also meet the demand of Chinese consumers for high-quality milk products. Li added that the demand for dairy products in China is huge, and has gone beyond basic products such as milk. “Although the consumer market in China is constantly changing, the trend for health is not going to change,” he says, “regarding our data and analysis, we believe that cheese and cream are going to be two of the fastest growing categories in the future.”

He said that in addition to infant milk powder, large packages powder, and liquid milk, high value-added dairy products such as whey, cheese, butter and cream are also in great demand in the Chinese market.

If the industrial chain can be transplanted to Pakistan, it is expected to achieve a win-win situation for the milk industry of the two countries.

Dairy products received great attention on 4th CIIE. At the occasion, the Dairy Industry Forum of CIIE was successfully held as well. At the event, the Committee also released a Report on China’s Dairy Industry, calling for enhanced cooperation in the dairy industry along BRI.

According to the report, the Chinese market has shown great demand for dairy products. In 2020, China imported 3.39 million tons of dairy products, 10.2pc year on year increase. Imports amounted to $12.4 billion, up 6.5pc year-on-year.

From 2011 to 2020, China’s dairy imports grew at a compound annual growth rate of 12.3pc, and this demand continues to expand. China’s diversified demand for high-quality milk products has also offered a new option for Pakistan’s dairy industry.

At present, China’s dairy import are mostly from New Zealand (40.44pc), the Netherlands (17.15pc), Australia (7.38pc) and other European and American countries. By contrast, Chinese dairy companies are trying to tap high-quality milk sources in Belt and Road countries such as Pakistan.