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Abstract

China has rapidly emerged as a large milk producer and dairy product importer and there is a growing need for information on China’s dairy market and trade behavior. This study uses the most recently available data to examine the trends of China’s dairy production, demand, and imports and to assess the potential impacts on U.S. exports of alfalfa and dairy products. While the empirical results suggest that China is very likely to remain as a large importer of alfalfa, powder milk, whey, cheese, and many other dairy products for meeting its growing domestic demand, China’s emerging demand for these imports is expected to bring more opportunities for the U.S. dairy industry. On the other hand, the United States is facing more competitions from other alfalfa and dairy product exporters and more studies are needed for developing effective programs to enhance U.S. competitiveness in the Chinese markets.

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