The market influence based on an event outside basic supply and demand seems to be on the go in China. COVID-19 seems to be influencing how the buyers in China are trying to preempt what might happen if a second or third wave of COVID hits. In effect, they seem to be building stocks.
The market influence based on an event outside basic supply and demand seems to be on the go in China.
COVID-19 seems to be influencing how the buyers in China are trying to preempt what might happen if a second or third wave of COVID hits. In effect, they seem to be building stocks.
Recently, Ornua risk manager Colin Kelly said COVID-19 had resulted in a surge in demand for dairy products such as butter, milk and cheese sold into retail channels.
The pandemic had also forced many large dairy importers such as China to start stockpiling large volumes of dairy product in anticipation of a second or third wave of COVID-19.
Whey driver
China's imports of its main product categories in July 2020 totalled 293,500t, which is 43,800t and 17.5% more than last year.
The main product, whey milk powder (WMP), totalled 37,100t, down 11.3% on last year, while skim milk powder (SMP) totalled 34,600t, up 2.5%.
Whey imports were 63,700t, up a decent 64%, and butter totalled 6,470t, up an even higher 83%.
Cumulative imports for the year now total 1.89m tonnes, which is 126,500t and 7.2% higher.
WMP imports are just short of 450,000t, identical to last year, while SMP totalled 192,000t, down 10% now.
Whey imports are 337,600t, up 37%, and butter totalled 56,500t, up 47%.
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