Chinese dairy import volumes reached a monthly record high during Jan ’16 however a shift in the market share of the originating regions of the import volumes could have negative implications for U.S. and New Zealand dairy producers. The EU-28 has recently obtained an increased market share of Chinese dairy imports at the expense of New Zealand, among other areas, incentivizing European producers to continue to produce at current strong output levels. The global dairy supply and demand balance is unlikely to reach equilibrium until a slowdown in EU-28 milk production is experienced, and an increase in Chinese demand for EU-28 dairy products could delay a potential production slowdown. Please contact us if you would like to learn more about our dairy research products, including the current report that provides an overview on how the shifting of Chinese dairy trade partners may affect global dairy markets.