China’s slowing economy is not helping global dairy prices. The country’s second quarter GDP grew 6.3% compared to the same quarter last year, smaller than what analysts expected. Last year GDP grew only by 0.4%, the second smallest growth rate in the past 10 years.
Market watchers say China has been importing few dairy products which is driven in part by its faltering economy. They add that there are other economic issues that suggest trouble is brewing for Beijing and shrinking demand for dairy could temper global dairy prices for some time to come. Year-to-date through June, China’s whole milk powder imports stand at 610 million lbs., down 45% compared to the same period last year.
Ice Cream Consumption Drops
I scream, you scream, but it appears fewer people are screaming for ice cream these days. The USDA’s Economic Research Service reporting that in 2021, people consumed an average 20 lbs. of frozen dairy products, that’s 6 lbs. few than in 2000.
It reports that the consumption of frozen dairy products includes ice cream, frozen yogurt and other frozen dairy products has been on the decline since the 1990’s. The ice cream category alone stood at 12 lbs. per person in 2021, a drop of about 4 lbs. from 2000. Experts say the downward trend is in line with the decline in consumption of caloric sweeteners, reflecting the shifting preference among consumers.
