New Zealand and Australian milk exports are expected to rise following the end of China's one-child policy, writes IndustryEdge MD Tim Woods.
There are expectations of six million additional births in China per year, from 2017, for at least a decade, says the research company.
Milk products, including milk powder and baby formula, makes up 34 per cent, on average, of a Chinese family's expenditure in the first five years of a child's life.
The biggest winner – globally – is expected to be New Zealand, with milk powder already the country’s largest export. China is its largest market, and Fonterra its largest export income earner.
All milk powder and milk products are exported in fibre packaging, including bags and sacks, as well as corrugated boxes. Most are made from virgin fibre – for strength reasons.
As milk product exports grow, so too will the packaging materials in which they are exported.
Production expansion in the region, to meet the new demand, is expected. Industrial grade bag and sack expansion is already underway, with both Oji Fibre Solutions (formerly Carter Holt Harvey Pulp, Paper & Packaging) and Orora currently building production capacity for supply to New Zealand’s dairy industry.
Supplier opportunities throughout the value chain of both the dairy and packaging industries will be significant.
