Chinese milk production declined 2.9% YOY in March – the 10th successive monthly contraction, according to the latest China Dairy Monthly Report. Liquid milk consumption fell 10.1% YOY for the month, implying a 14% increase in “manufacturing milk”. Weekly milk prices have been flat since mid-March and declined 1.3% for the year to date.

Both WMP production and consumption continued to sharply decline. WMP inventories at the end of March were reported at 46,000t while stocks-to-use were the lowest on record for the month and 76% below the 5-year average. Meanwhile, with continuing weakness in domestic consumption, SMP stocks-to-use at the end of March were 45% above the 5-year average. Production remained near-flat YOY and was reported at 33,500t in the year to March (compared to 583,000t for WMP).