For all the non-believers of the health benefits of milk, it is surprising that milk prices are climbing around the world and is now on multiyear highs caused in part by a surprising demand from the second-largest consumer market, China.
China is filling in much of its consumers' rising demand for dairy by increasing purchases from abroad.
Following scandals over tainted domestic milk, the mainland was already a big buyer of milk powder for infant formula.
Chinese customs data show the country increased roughly a third of its skim-milk powder and cream purchases in the eight months leading to Aug. 31, while whole-milk powder imports rose 23% compared to the same period in 2018.
Analysts found the jump in demand surprising because naturally, the US-China trade tensions and a slowing down of growth in the country's economy would automatically reduce demand for dairy.
The Chinese are consuming more dairy now though milk products traditionally are not a big part of the Chinese diet.
Now, baked goods and beverages such as tea topped with cream and cheese are not the only obvious foods that have milk.
Chinese everyday foods like spring rolls and glutinous rice balls have a high possibility now of having milk.
Alice Cheng, 31 years old, while eating in a posh restaurant, sliced into a salted duck-egg yolk surrounded with thick cream and commented that she thinks "it's nice with cream."
Meanwhile, Jason Peng, who bought several pouches of drinking yogurt said that he drinks milk or yogurt every day adding that his parents encouraged him as a child.
Wholesale prices of skim-milk powder, the common ingredient in commercially produced bread, cake, chocolate, and ice cream have risen by 26% to 47% in Europe, Oceania and the US.
Likewise, low-fat milk powder prices are closing in on five-year highs worldwide.
According to data from the U.S. Dairy Export Council, in October, the average price for this commodity across the three regions was $2,583 a metric ton.
Prices of whole-milk powder increased about 13% on the year climbing earlier because of the rising global consumption of foods with natural fat.
Both types of milk powder, skim and whole milk, are used in large quantities with some food manufacturers using a combination of skim milk and edible oils to mimic the fat composition of whole milk.
The demand and higher prices are good news for the world's dairy farmers who had several years of low returns with some places even having milk gluts.
In 2016, following a drop in milk prices, large quantities of excess milk were dumped in fields in some areas in the US.
