Product Brief: Dairy and Dairy Products Key Import and Export Markets, January–August 2026

Summary

China's dairy and dairy product exports reached USD 40 million in August 2026, down 4.55 percent year on year, with export volume at 17,600 tonnes, down 4.54 percent, according to China Customs statistics. Cumulative exports for the first eight months totalled USD 340 million, down 4.53 percent year on year, while export volume rose 4.52 percent to 128,900 tonnes. The top ten export destinations by value were Hong Kong, China; Nigeria; South Korea; Singapore; Thailand; the Philippines; Macao, China; Russia; Vietnam; and Pakistan, together accounting for 4.51 percent of export value.

Hong Kong, China was the largest export market at USD 100 million, down 4.50 percent year on year; August exports to Hong Kong, China were USD 10 million, down 15.9 percent. On the import side, China imported USD 900 million of dairy and dairy products in August, down 6.7 percent year on year, with import volume at 173,600 tonnes, down 13.6 percent. Cumulative imports for the first eight months reached USD 8.28 billion, down 1.6 percent year on year, with import volume at 1,777,600 tonnes, down 3.0 percent.

The top ten import sources by value were New Zealand, the Netherlands, Germany, France, Australia, the United States, Switzerland, Ireland, Denmark and the United Kingdom, together accounting for 93.9 percent of import value. New Zealand was the largest source, with imports of USD 4.21 billion, down 4.5 percent year on year; August imports from New Zealand were USD 380 million, down 9.9 percent. The brief was released by the China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce and Animal By-Products on 23 October 2026.

Commentary

China's dairy imports continue to contract, putting direct pressure on small and medium-sized New Zealand suppliers. In the first eight months of 2026, China's dairy imports were USD 8.28 billion, down 1.6 percent year on year, with volumes down 3.0 percent. New Zealand, the largest source, saw imports of USD 4.21 billion, down 4.5 percent, with the August decline reaching 9.9 percent.

The trend extends the recent slowdown in China's dairy import growth, driven by rising domestic production, weak consumer demand and high inventory levels. Large New Zealand dairy companies such as Fonterra can maintain share through scale and long-term contracts, but smaller suppliers face tougher competition. On the export side, China's dairy export value fell 6.5 percent while volumes edged up 0.9 percent, reflecting lower unit prices and affecting re-export trade centred on Hong Kong, China.

New Zealand SMEs should watch changes in China's import mix: liquid milk and cheese have seen larger declines, while higher-value functional dairy products remain resilient. At the same time, Chinese dairy companies are consolidating, with giants such as Yili and Mengniu squeezing imported brands. New Zealand firms need to move from commodity supply to differentiated products such as organic, grass-fed and A2 protein segments, and explore new channels including cross-border e-commerce.

Under the upgraded China–New Zealand free trade agreement, dairy tariffs are essentially zero, but non-tariff barriers such as registration, certification and labelling requirements still matter. In the short term, weak Chinese dairy imports may persist into 2027; New Zealand SMEs should optimise cost structures, develop alternative markets in Southeast Asia and the Middle East, and deepen their presence in China's premium segments to ride out cyclical volatility.

Keywords: dairy and dairy products, imports and exports, customs statistics, New Zealand, Hong Kong, China, import value, export value, country markets, January–August 2026, year on year

Source: foodmate.net