China lockdowns hit dairy demand
Covid restrictions in China are likely to slightly dampen milk powder imports into that country, according to Stefan Vogel, Rabobank research general manager for Australia and New Zealand.
China is NZ’s single largest market for our total primary exports and the number one for dairy, meat and wool, seafood and forestry. It is also high on the list for horticulture.
While there is no formal ban on our exports to China, the fact that the country is in lockdown is creating problems with distributing goods with many workers staying at home or facing restricted movement to do their work.
NZ Trade and Enterprise (NZTE) has set up a special section on its website, which is regularly updated.
It anticipates ongoing disruption to business for at least a fortnight, as Chinese local government agencies encourage staff to stay at home.
Meanwhile, market analysts AgriHQ say farmers are being stuck with stock because factors beyond their control are conspiring against them. It says record high farmgate prices in November and early December prompted many farmers to hold stock for longer than usual.
“Unfortunately, coronavirus came to a head when the market was expected to start picking up and consumption has collapsed.”
