According to the U.S. Dairy Export Council (USDEC) China imported 550,404 tons of milk powder, whey, cheese, and butterfat in the last four months of 2013 alone – this is 74% greater than the same period a year before and more than Russia, Mexico, Japan, and Algeria combined during the same period. Because of foot and mouth disease, industry restructuring, and weather issues, China’s domestic milk production contracted 6% in 2013 as demand continued to increase pushing imports up 34% from 2012 and up 61% from 2011. The USDEC expects the demand for dairy products from China to continue because of the country’s high cost of production, lack of arable land and infrastructure, and 17 million babies being born every year. U.S. dairy exports to China for January through November 2013 had a total value of $635 million – up 67% from the same period in 2012. In response to China’s high demand, production in Australia has not increased due to drought and production in the U.S. increased only 0.5% in the last four months of 2013 compared to a year earlier, but production in the EU in October and November was up 4.2% from the same months in 2012 and milk production in New Zealand was up 6% in September through November 2013 compared to a year earlier.
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