China opens market for Brazilian dairy exports

China has opened the market for Brazilian dairy exports. The Chinese enabled 24 Brazilian establishments to move products such as milk powder and cheese. The announcement was made by Minister Tereza Cristina (Agriculture, Livestock, and Supply).

China abre mercado para lácteos brasileiros. Vinte e quatro estabelecimentos vão poder exportar produtos como leite em pó e queijo para o país asiático ?? ? ?? https://t.co/7fTJI1oHnm

? Embrapa pic.twitter.com/RlZsOt526j

— Ministério da Agricultura (@Min_Agricultura) July 23, 2019

The minister stressed that the opening of the market will boost the milk production chain. “I think this is exceptional news for the dairy sector, which is going through a very difficult and hopeless moment. And that brings hope for the dairy industry,” she said.

There are currently 1.2m small dairy farmers in Brazil. “I was very happy and I would like to pass this good news to the Brazilian producers, who are having a hard time and just lost R$0.30 per liter of milk, and now they will have the perspective. Of course, it is not for tomorrow, but it is an excellent opening for Brazil.”

Tereza Cristina pointed out that “Brazil has always wanted to have access to the Chinese market, in order to be able to take the product from Brazil and improving the price of Brazilian producers.”

The certification had been agreed with China since 2007, but there was no Brazilian plant authorized to export. In her trip to the country in May, the subject was one of the minister’s priorities. Brazil produces 600,000 tons of milk powder. The Chinese, the largest dairy importers in the world, buy 800,000 tons of the product.

Earlier this year, in April, the ministry had forwarded the list of 24 establishments to the Asian country. Products that may be exported include non-fluids such as milk powder, cheese, and condensed milk. “Brazilian cheeses will be exported and thus will regulate the Brazilian milk market,” said Tereza Cristina.

Exports

With the qualification of the establishments, the expectation of the sector is to export US$4.5m in dairy products, such as cheese and milk powder, estimates Viva Dairy – Brazilian Dairy Association.

In 2018, the Chinese imported 108,000 tons of cheese, with an average annual growth of 13% over the past five years.

The Brazilian dairy sector exports reached to more than 50 destinations in 2018. Prior to the opening of the Chinese market, the sector had already been investing in the entry of products in China through participation in fairs.

The following DataLIner graph shows Brazil’s dairy export trends since Jan 2015:

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