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Difficult times for US dairy – long-term trends, and insights for China’s dairy companies

October 2020

The US dairy industry has been facing several challenges, raising questions about what kind of future it faces. How is the COVID-19 pandemic affecting the US dairy industry? What are the long-term trends and underlying industry structures that led to the demise of two leading dairy companies and thousands of small farms? Do these difficulties reflect the overall state of the US dairy industry? What can China’s dairy companies learn from their fate?

In spite of anticipated long-term growth in China’s dairy consumption, China’s dairy companies need to actively develop new products for evolving consumer preferences and growing cold chain capacity. Investing in start-up companies can be more effective than in-house innovation. Companies need to periodically adjust their product portfolios to optimise growth and profitability.

This report analyses recent difficulties and ongoing trends in the US dairy industry across the retail, processing and farming sectors. It presents some key insights from the US that could be useful to China’s dairy companies. 

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Wenjing Cao

Partner, Food Supply and Integrity Services, PwC China

Tel: +[86] (10) 6533 7026

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