China’s appetite matters

China. It's the leading importer of dairy products. In the dairy world, when the Asian nation sneezes, we all catch a cold because worldwide dairy product inventories build and prices begin to fall. However, in all reality, dairy is far down the list on China's commodity appetite.

These statistics, which were derived from a variety of sources, give perspective into China's buying power:

Aluminum, China purchased 54 percent of the world's needs
Nickel, 50 percent
Zinc, 46 percent
Tin, 46 percent
Steel, 45 percent
Lead, 40 percent
Cotton, 31 percent
Gold, 23 percent
Oil, 12 percent

What about food?

Rice, 30 percent
Soybean oil, 30 percent
Soybean meal, 28 percent
Corn, 22 percent
Wheat, 17 percent
Sorghum, 11 percent
Sugar, 10 percent
Palm oil, 10 percent

When it comes specifically to soybeans, China's appetite for them has exploded. Of the 80-plus million acres dedicated to soybeans in the U.S., the yield from nearly 20 million acres was exported to China last year. That represented 25 percent of our production and 33 percent of China's entire imports.

While China has a growing appetite for dairy, it remains low on the priority list compared to other foods, as pounds of dairy products per person consumed remains low.

How low?

China accounted for 18 percent of the world's dairy trade last year, stated Al Levitt with the U.S. Dairy Export Council. As for dairy product consumption? Those figures are hard to come by, noted Levitt. However, he pegs that total at roughly 6 percent

Granted, as the Chinese develop a taste for dairy, the combination of the world's largest population and more pounds per person will drive dairy demand.

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