Accelerating Growth in Raw Milk Output, up 7.9% YoY

According to data from National Bureau of Statistics, China’s raw milk output totaled 32.01 million tons in 2019, up by 4.1% year on year. Raw milk output has accelerating growth in 2020, with Q1 output of 6.54 million tons, up 4.6% year on year; Q2 output of 7.77 million tons, up 10.8% year on year; first six months output of 14.31 million tons, up 7.9% year on year.
Our analysis is of the view that the increase in dairy cattle inventory and per cow yield have led to the drastic increase in raw milk output in the first six months of the year. Per cow yield in the first six months is expected to go up by over 5% if compared year on year. By the end of June, China’s dairy cattle inventory is expected to go up about 2.5% year on year.