Fonterra's Anchor milk products are displayed at an exhibition in Shanghai. [Photo by Wang Zhuangfei/China Daily]

China registered an average compound growth rate of 16.5 percent for dairy imports between 2010 and 2019, and the trend is set to continue due to the growing demand caused by the country's domestic consumption upgrade, according to a report released by the Dairy Industry Special Committee of the China International Import Expo Enterprise Alliance.

In 2019, China imported 3.077 million tons of dairy products worth $11.64 billion, up 11.9 percent and 10.2 percent respectively, according to the report. In terms of product categories, all registered rapid growth except butter, which dropped 33.1 percent from the previous year. The import of whole milk power, which ranked first in terms of import volume, grew by 23.8 percent. Skim milk powder witnessed the fastest increase of 43.1 percent.

New Zealand, the Netherlands and Ireland are the top three source countries of China's dairy imports in 2019, the report stated. New Zealand's dominance in imported dairy products in China is obvious as the country is the top source for almost all categories of imported dairy products except infant formula milk powder. More than 62 percent of China's whole milk powder imports were from New Zealand last year. The Netherlands took the largest share of China's formula milk powder import.

Shanghai, Guangdong and Tianjin are the top three provinces or cities that received the most dairy imports, while the Inner Mongolia autonomous region saw the fastest annual growth in import volume, up 51 percent from 2018, according to the report.

The report predicted that with the improvement of Chinese consumer's consumption levels, China's dairy imports will sustain rapid growth, which will provide broader market opportunities for Chinese and foreign dairy enterprises.

Established on July 26, the Dairy Industry Special Committee chaired by Nestle also includes seven other members: Fonterra and Arla Foods Danone, Wyeth, a2, Ausnutria, Saputo and Theland. The committee is set to promote the integration and cooperation between China and the world dairy industry, and facilitate the high-quality development of China's dairy industry. It also aims to provide an important platform for international dairy enterprises to strengthen communication and coordination.

In addition, the committee hopes to help China build a sustainable milk and dairy development system by discussing the balance between environmental and social needs, new technologies and development trends in animal husbandry.