The Oceanian country reached a new agreement with the Asian giant that compromises competition for Uruguayan products.
In the context of a drop in demand for dairy by China, a factor that compromises the market Uruguayan which depends largely on the Asian giant, the agreement with New Zealand which will allow dairy products to be exported to that country with zero tariffs and the possibility of accessing quotas.
“It is really good news not only for dairy farmers but [también para] the New Zealand economy,” said the New Zealand Minister of Trade and Agriculture, Todd McClay.
This decision belongs to the implementation Free Trade Agreement (FTA) between China and New Zealand -signed in 2008 and implemented that same year-, an agreement that Uruguay still haunts even though the president’s trip Luis Lacalle Pou to that country at the end of last year has been beneficial in terms of trade agreements.
The main product exported New Zealand to China It’s powdered milk, just like Uruguay, and around a total of 1.4 million tons during the last three years, taking into account other products. Uruguay, Meanwhile, there was a drop of 11% in terms of volume exported to that country and a 20% drop in relation to the value of products, especially in powdered, fluid milks and serums, they fell; while those of lesser relative importance showed increases compared to last year.
Bad forecasts for China
China will have a 2024 of declines in the demand for milk powderwhich compromises the Uruguayan exports since Beijing is the main buyer; one of the worst declines recorded since 2017 and very far from the peak demand of 2021.
According to him United States Department of Agriculture (UDSA, for its acronym in English) a drop in imports of whole milk powder is projected during 2024. The report GAIN Dairy and Products Annual, presented by the UDSA in the month of October 2024, establishes that the chinese imports lowest since seven years.
According to the report, the consumption It has been declining as consumers seek additional benefits for their health. However, they established that in 2024 the trend would continue due to an increase in the consumption of whole milk powder in the bakery sector.
As for the stocks of whole milk powder, It is expected to decrease this second half of the year, although it is estimated that they will be higher than those at the end of 2022. Meanwhile, the first half of this year was marked by an increase in production and with this, a jump in product stocks. .
Source: Ambito
