According to official Chinese government weekly data, farmgate milk prices have surged to all-time highs. For the week ending 4 July 2021, milk prices were reported at CN¥4.30/kg – 20% higher than to the same period of 2020. Generally, Chinese milk prices tend to correlate with protein (SMP) valuations in key global supply regions (EU/US/NZ), and have now risen despite a sharp increase in local milk production as demand outpaces supply and local product mix changes towards fresh milk products, causing a rapid destocking in WMP.