Little growth expected for Chinese butter demand
New Zealand to remain main supplier
27 December 2023
1 minute read
By: Butter demand in China has grown tremendously over the last decade. In 2024, however, domestic consumption is forecast to show little growth as economic conditions weigh on demand from the food and service industry, according to a recent US Department of Agriculture (USDA) Global Foreign Agricultural Service (FAS) dairy market report.
Bakeries make up most butter use in China and, as economic prospects for the year have turned pessimistic, many have cut back on capacity utilisation to save costs.
Additionally, bakeries have reportedly opted to use more plant-based butter rather than dairy butter to cut costs.
While China has made concerted efforts to become self-sufficient in dairy products, processing capacity remains a significant constraint to butter production, and imports remain the primary means of supply. Imports in 2024 are forecast to mirror domestic consumption and remain little changed, with New Zealand acting as the dominant supplier.
