Dairy Products China News

Welcome to the August issue of China Dairy News

In August 2025, global economic conditions remain complex and challenging. The U.S.–China trade deadlock persists, with the U.S. having imposed multiple tariff hikes. As of 7 August, the average U.S. import tariff reached 12%, significantly disrupting global trade.

Amid a complex global environment, China's economy continues to show resilience as the multilateral trading system faces a pivotal moment. At its August policy meeting, the People's Bank of China emphasised the importance of protecting national financial security and strategic interests. In its Q2 2025 Monetary Policy Report, released 15 August, the central bank reaffirmed its "moderately accommodative" stance, targeting a recovery in inflation to appropriate levels, maintaining sufficient liquidity, and aligning money and credit growth with economic and price objectives. Meanwhile, the China Semiconductor Industry Alliance reported that domestically developed high-performance chips now account for 37% of the market—a nine-percentage-point increase from a year earlier. The dairy industry, undergoing structural transformation, continues to receive macro-policy support.

In August, China's dairy industry is being propelled by dual engines—technological innovation and value-chain reconstruction—to accelerate industrial upgrading. Enterprises are ramping up R&D in deep dairy processing, targeting breakthroughs in the industrial-scale preparation of lactoglobulin, supercritical fluid extraction, and high-end intelligent processing equipment. With pre-stocking for the Mid-Autumn and National-Day peak season under way, processors have increased raw-milk procurement, leading to an improved supply–demand balance. Innovation and consolidation are advancing rapidly: Feihe Dairy has redefined the national standard for infant formula and NHC has launched the third round of public consultation on the revised milk-standard framework.