China Dairy Farms Swim In Milk As Fewer Babies Cut Demand

China is awash in unwanted milk as falling birth rates and cost-conscious consumers have reduced demand, even as dairy farms have expanded in recent years, forcing smaller farmers out of business and reducing shipments into the world’s top importer, Mei Mei Chu reported for Reuters.

Chinese milk consumption fell from 14.4 kg per capita in 2021 to 12.4 kg in 2022. I Photo: COFCO Corporation

China’s milk surplus illustrates the unintended consequences of Beijing’s food security-driven efforts to boost its dairy sector by promoting consumption and encouraging expansion.

High costs and the lingering effects of an adulteration scandal in 2008, which killed at least six children and hospitalized thousands, have limited the country’s export opportunities.

Weighed down by a sluggish economy that has weakened demand for higher-priced foods like cheese, cream, and butter, as well as an aging population, Chinese milk consumption fell from 14.4 kg per capita in 2021 to 12.4 kg in 2022, the most recent year for which data is available from China's statistics bureau.

At the same time, milk output in China, the world’s third-largest producer, surged to nearly 42 million tons last year, up from 30.39 million tons in 2017, surpassing Beijing’s 2025 target of 41 million tons.