25 Mar 2013

Demand for dairy products in China still growing

1:00 pm on 25 March 2013

The demand for New Zealand dairy products in China continues to grow, despite importers being forced to pay more as the New Zealand import quota runs out earlier each year.

This year the quota was used up before the end of January. Last year it ran out in February and the year before, in March.

Once imports reach the threshold of 71,000 tonnes, importers have to pay the same tariff as is imposed on products from other countries.

New Zealand, through Fonterra, is the biggest supplier of dairy products to China, mainly milk powders.

A senior market analyst with Rabobank, Hayley Moynihan, says demand has been particularly strong over the past three to six months.