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Cream Cheese Tea? Milk Prices Soar as Chinese Get a Taste for Dairy

WSJ Original article ›
LyrArc Article Gist
People in China are drinking more milk and cream desserts, and eating more cheese with a shift in eating habits. Traditionally this was not a big part of Chinese food. Wholesale prices of skim milk powder have surged by 26%-47% in the U.S. and Europe with this increased Chinese demand. Earlier China imported more milk powder for baby infant formula after tainted product was discovered in domestically produced baby milk powder. In 2019 China imported about 33% more skim milk powder and 23% whole milk powder than 2018. 

Parents encourage milk drinking habit. Even the higher lactose intolerance in people from East Asia is not a problem in this increase in dairy consumption. Beneficiaries of this increase in demand are farmers in America, Europe and New Zealand after several years of difficult conditions. Dry conditions in Australia and northern Europe, higher feed costs, hurt dairy farmers.



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