It is increasing its own domestic dairy supply, with production forecast to grow by nearly 40 per cent by 2032 - however, demand is forecast to increase by nearly 35 per cent - leaving room for imported product.
But MFAT said eventually the growth in production would outpace the growth in consumption.
“Dairy imports will continue to grow over the projection period but the rate of growth will decline over time.”
Production of beef and sheepmeat within China is also forecast to grow but at a slower rate of 9.2 per cent and 10.2 per cent respectively.
Imports of beef will lift 17.2 per cent and sheepmeat imports are forecast to grow 33.3 per cent in the next decade.
China will continue to eat more red meat than it can produce - so will have a continued reliance on imports.
“For imported beef, the projected increase of 17 per cent amounts to 460,000 metric tonnes, which, for context, is more than double New Zealand’s total beef exports to China in the year-ending September 2023,” MFAT’s report said.
“An opportunity exists for beef exporters to China but New Zealand currently is only a small player, holding only 8 per cent of the market share in the very competitive imported beef market.”
China also continues to grant access to export beef, with Denmark and Poland signing agreements this year.
“While sheepmeat imports are expected to grow significantly, China already accounts for more than 57 per cent of New Zealand’s total sheepmeat exports.
“Given New Zealand’s current sheepmeat production and the limited capacity to ramp up production in the short-term, New Zealand is unlikely to fill the supply gap without expanding supply,” MFAT said.
Horticulture is set to become the biggest growth opportunity due to higher household disposable income combined with consumer preference for premium imported fruit.
China’s imports of fruit are forecast to grow by 92 per cent over the next decade, however, the report does not break that down into different fruit varieties.
- RNZ
