Brasilia (Nov. 19, 2020) – According to assessments from experts during the “Chinese Dairy Market” webinar on Thursday (November 19), there is a huge potential for Brazil to boost their exports of powdered milk, cheeses, butter and numerous other dairy products to China. Trade opportunities in China were raised during the meeting.
Camila Sande, the coordinator of Exports for the Brazilian Agriculture and Livestock Confederation (CNA), presented an overview of production in Brazil and expectations for introducing dairy products into the Chinese market.
She discussed CNA’s representation and the creation of the Agro.BR project, an initiative aimed at raising the presence of mainly small and mid-sized Brazilian producers within the international market.
“We’re focused on the Chinese market. We’ve already established a relationship with China. The challenge for companies is to have their products penetrate the market, like dairy products, through trademark registration and appropriate distribution. It was really important to hear from them that we’re going to have solid partnerships in the country to accompany and support the promotion and entry of Brazilian dairy products into China,” she stated.
Camila also spoke about Brazilian milk production, which places the country as the 3rd highest producer in the world. She believes that production is expected to reach 47 billion liters by 2030. Milk production grew by 19.8% between 2009 and 2019 with the production of 34.4 billion liters.
“This production reflects our demand for commercial partners, particularly China, which is a booming consumer market in both quality and quantity.”
Event attendees included the minister-counselor and chief of the economic sector at the Brazilian Embassy in Beijing, João Batista do Nascimento Magalhães, the China Dairy Association’s director of international relations, Cheg Bing, Li Zhiping from the Foreign Economic Cooperation Center (FECC), the special advisor to the Minister of Agriculture and head of “Núcleo China no Mapa”, Larissa Wachholz, and the technical advisor of Viva Lácteos, Gustavo Beduschi.
“China is the largest importer of dairy products, but per capita consumption is still rather low. The average Chinese consumes 35 kg per year, and the country’s government expects this consumption to jump to at least 110 kg per year. This data illustrates the potential for Brazil within this sector,” explained the minister-counselor and head of the economic sector at the Brazilian Embassy in Beijing, João Batista do Nascimento Magalhães.
Li Zhiping from the FECC described the structure of the entity, which promotes China’s interactions with different countries and focuses on multilateral relations and international cooperation. She added that the virtual meeting served as a way for Chinese businessmen to better understand the Brazilian dairy market and take advantage of opportunities in that market.
“My hope is that opportunities will be explored to improve the quality and effectiveness of the collaboration while strengthening partnerships, the level of cooperation and the promotion of projects that are beneficial to both countries.”
Chen Bing from the China Dairy Association (China Dairy Association) provided an overview of the country’s dairy industry, including trends and opportunities for Brazilian dairy products.
He went on to state that there are 3.9 million tons of dairy products produced in China and that the most common product is liquid milk. As of now, Chinese consumption is 34.7 kg per capita per year, representing one-third of the average global level.
“As such, there’s a lot of room for Brazilian products, mainly because demand has risen for butter and cheese. As of September this year, for example, China imported only 50 kg from Brazil. China is expected to become the largest global consumer of dairy in 2022, surpassing the United States.”
CNA’s Export Coordinator, Camila Sande, spoke about the office that the Confederation has in Shanghai in partnership with the “Agência Paulista de Promoção de Investimentos e Competitividade“ (the São Paulo Agency for the Promotion of Investments and Competitiveness, or InvestSP), created to support Brazilian entrepreneurs who wish to export to China. She stated that Agro.BR negotiations and business missions targeted towards the dairy market in China are scheduled for 2021.