Dairy Products China Monthly Report

Welcome to the June issue of China Dairy News

In June 2025, global trade policies underwent a new round of adjustments. The EU-U.S. tariff talks reached a crucial stage, with Canada imposing additional tariffs on U.S. steel and aluminum products. The global trade pattern faced a profound restructuring. The EU accepted a 10% reciprocal tariff benchmark, with tariffs on U.S. exports set to rise to 50% by 9 July if no agreement is reached, impacting the automotive and machinery industries. Meanwhile, the Ukraine conflict entered a critical phase, U.S.-Iran nuclear negotiations hit a deadlock, the Middle East situation tightened, and geopolitical tensions swept the global oil market, causing international oil prices to surge.

Amid geopolitical and geoeconomic uncertainties, the Chinese economy demonstrated strong resilience and vitality. In 2025, the government set a GDP growth target of around 5%. Q1 2025 GDP grew by 5.4%, with major economic indicators continuing to improve in Q2 2025. Many international institutions raised their growth forecasts for China. In H1 2025, China intensified domestic demand-expansion policies. From Jan. to May, total retail sales of consumer goods increased by 5.0% YoY, and service retail sales grew by 5.2%. Financial support for consumption was significantly strengthened.

In June 2025, China's dairy industry accelerated its transformation amid global supply chain fluctuations and weak domestic consumption. Policy-wise, it combined short-term relief funds with long-term standard upgrades. In the market, it innovated by applying cheese to specific scenarios and enhancing the functionality of sheep's milk. With the implementation of the national food safety standard for sterile milk on 16 Sept., the heating up of Shanghai Milkground Food Tech Co., Ltd.'s Olympic-related cheese marketing, and the entry of Saudi Arabian dairy products into the Chinese market, the industry shifted from stabilizing quantity to improving quality. However, the real turning point will depend on the in-depth integration of cost control across the entire industry chain and global resource allocation.