U.S. Losing Dairy Sales to EU in China

(WASHINGTON, DC) Whey products and lactose are the top dairy products exported, by value, from the United States to China. China’s imports of whey products (dry whey, whey protein concentrate, whey protein isolate, and modified) and lactose have declined sharply in recent months. African Swine Fever (ASF) is a virus that has affected the country’s pig and hog population and may have affected the markets for these products because they can be fed to pigs and hogs. In addition to ASF, tariffs by China, in response to U.S. tariffs on certain imports from China, may have contributed to the decline in imports of whey products and lactose from the United States. The U.S. market share declined from 57 percent in 2017 to 51 percent in 2018 and to 38 percent for the first 5 months of 2019. According to the Economic Research Service, the United States’ largest competitor in this market is the European Union (EU). In the first 5 months of 2019, the EU increased its market share to 42 percent, up from 36 percent in 2018 and 34 percent in 2017.