A return to growth for China, as retail sales dip. But how are China’s consumers fairing?

In the end, China’s economy faired ‘surprisingly well’ during 2020 as government efforts to deal with Covid-19 and support for manufacturing businesses saw a return to growth in the latter half of the year, notes Richard Field in this month’s edition of Dairy Products China News. 

Even so, retail sales took a dip and with differing priorities a 1.1% decline in liquid dairy sales during Q1-Q3 may have been less. Moving forward, consumer prospects remain key to further growth in dairy consumption, especially at a ‘higher quality’ price point. 

Dairy analysis in this issue:

• The Dairy Consumption Trend Report (Q1-Q3) reflecting a rise, with recovering liquid dairy (LMP) demand and growing frozen dairy (FMP) consumption.

• A three-Year Action Plan from the Inner Mongolia Autonomous Region which aims to raise its dairy herd to 2.15m head and milk production to 7.2m tonnes by 2022.

• Mengniu forges ahead with Chinese farm and plant construction ahead of 2021 openings.

• Youran Dairy publishes its IPO prospectus on the HKEX.

• Fonterra posts significant profit growth despite a revenue slip.

• Yiming Food looks to raise USD75.3m to grow its store network and expand capacity. 

• A booming dairy sector despite supply shortages pushing up raw milk prices.

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