Welcome to the December issue of China Dairy News
By the close of 2025, the global economy had entered a period of low growth coupled with mild inflation, as monetary policies diverged—the Federal Reserve's path after cutting rates was unclear, the European Central Bank kept rates steady, and the Bank of Japan moved to normalize policy. Against this macroeconomic backdrop, dairy trade was defined by structural changes in output from major exporters, subdued activity in global spot markets, and fragmentation in demand.
Confronted with external headwinds, China's macro policy is forging a dual-focused path of stability and upgrading. The recent Central Economic Work Conference set the 2026 guiding principle as "seeking progress while ensuring stability and improving quality and efficiency," continuing an expansionary fiscal policy and a moderately accommodative monetary stance. The focus is on boosting domestic demand and driving technological innovation to underpin industrial transformation.
The interplay of domestic and external forces is catalyzing a profound structural transformation in China's dairy market. Regulatory support is evident as the State Administration for Market Regulation begins accepting registration applications for infant-formula liquid milk. Technologically, initiatives like the high-quality milk project are setting upgraded standards to define the nutritional value of "freshness". Within the consumer market, shifting demand patterns are creating opportunities, with functional dairy products emerging as a primary growth driver.
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