China Targets EU Dairy Just as Its Own Milk Industry Flounders

China, one of the largest markets for dairy product exports, is increasingly turning to European Union countries in search of dairy products. This shift in pricing policy is tied to recent difficulties in its domestic dairy industry, which is facing growing challenges such as declining production and high feed costs.

In recent months, China has noticed a significant drop in its own milk supplies as a direct consequence of worsening economic conditions and ineffective management in the agricultural sector. As a result, the country's authorities are urgently seeking ways to increase dairy product imports to meet domestic market demands and strengthen food security.

Experts note that this transition towards purchasing dairy products from EU countries could lead to substantial changes in the global dairy market. Countries like the Netherlands and Germany may benefit from the increased demand for their raw materials. This creates potential opportunities for European producers to expand their share in the Chinese market, but it also raises concerns about how this will impact local producers.

Despite potential benefits for European countries, some analysts believe this could lead to intense competition in the international market, which in turn might trigger price volatility and undermine the stability of existing dairy agreements.

Thus, changes in Chinese dairy policy are indicative of rising trends, and while they may open new doors for exports, there are uncertainties about the long-term reaction to these changes both in China and Europe.

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