China: Dairy and Products Semi-annual

China's dairy sector continues to adjust under ample domestic milk supply, with production expected to remain broadly stable in 2026 as processors shift milk toward higher-value products such as butter and cheese. Weak retail demand and reduced use of reconstituted milk weigh on whole milk powder consumption, while foodservice and bakery expansion support steady growth in butter and cheese use. Post forecasts imports of WMP and SMP to decline due to weaker demand, while butter imports remain broadly stable and cheese imports increase to meet demand for higher-quality products. Whey demand remains firm, supported by feed and food applications, with China continuing to rely on imports despite short-term fluctuations.