Chinese milk production declined 5.1% YOY in March, according to the latest China Dairy Monthly Report. This was the third consecutive monthly decrease, following increases between September and December 2025. Liquid milk consumption rose 2.6% YOY for the month, implying a 20% decrease in “manufacturing milk” availability.

WMP consumption continued to decline, but local output increased since May of last year. WMP inventories at the end of March rose to 212,000t (also due to higher imports for the month), while stocks-to-use were 99% above the five-year average. Meanwhile, with lower imports and improved local manufacture, SMP stocks-to-use at the end of March were 46% below the five-year average and second lowest on record for the month (with the lowest being 2018).