Welcome to the April issue of China Dairy News
In April 2026, the global dairy market is deeply mired in increasingly complex geopolitical and economic games. Persistent tensions in the Strait of Hormuz continue to impact the global food supply chain, with the world's largest dairy operator, Lactalis Group, already warning of rising logistics costs and upward price pressure. Upstream global dairy production growth has slowed, yet European capacity remains stable; coupled with abundant supply of Nordic cheese and other products, this has further suppressed international market milk fat prices and intensified the wait-and-see sentiment among international buyers.
In Q1, China's gross domestic product grew 5.0% YoY, accelerating 0.5 percentage points from Q4 of the previous year. In terms of foreign trade, total goods trade imports and exports grew 15.0% YoY. However, consumer spending willingness remains cautious—total retail sales of consumer goods grew merely 2.4% YoY in Q1. At the policy level, anti-subsidy tariff policies on EU dairy products have been continued, benefiting domestic substitution; the newly added Romanian dairy access to China in April further enriched import sources, helping balance market supply.
Multiple financial reports released by dairy enterprises in April show that after experiencing sustained capacity reduction pains, the upstream dairy industry has demonstrated positive signs of recovery. Several large-scale ranches reported net profit rebounds in their 2025 financial reports, while destocking and herd reduction continue to advance. Technical debates regarding new process access in the formulation of pasteurized milk standards all indicate that China's dairy industry is transitioning from large-scale stockpiling competition toward a more steady growth track focused on key raw material control, quality grading management, and domestic circulation as the primary orientation.
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