1、 1 Required Report:Required-Public Distribution Date:June 01,2026 Report Number:CH2026-0067 Report Name:Dairy and Products Semi-annual Country:China-Peoples Republic of Post:Beijing Report Category:Dairy and Products Prepared By:FAS China Staff&Victoria Dokken Approved By:Eric Mullis Report Highligh

2、ts:Chinas 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 co

3、nsumption,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

4、firm,supported by feed and food applications,with China continuing to rely on imports despite short-term fluctuations.2 EXECUTIVE SUMMARY FAS China provides this reporting and analysis as a service to U.S.farmers,ranchers,rural communities,and agribusinesses in support of a worldwide agricultural in

5、formation system and a level playing field for U.S.agriculture.The forecasts and revised estimates provided in this report are issued by FAS China and are not official USDA data.Fluid Milk:Post forecasts production to remain broadly stable in 2026 with imports remaining low.Domestic supply continues

6、 to meet demand,while shifting consumption patterns and weak demand limit import growth.Whole Milk Powder(WMP):Post forecasts WMP production to decline slightly in 2026 as less surplus milk and a shift toward higher-value products limit output.Post expects consumption to decline modestly due to weak