Introduction – Current State of Play: The Milk Sector in China
In August 2025, China’s milk market is riding a rollercoaster of trade tensions, domestic overproduction, and shifting consumer trends. If you’re in the dairy import/export business or sourcing milk products from China, you can’t afford to take your eyes off the ball.
Here’s the situation: China has just extended its anti-subsidy investigation into dairy imports from the European Union (EU) for another six months, heightening uncertainty for EU exporters. This move comes in retaliation to the EU’s tariffs on Chinese electric vehicles, revealing how interconnected today’s global trade dynamics are.
At the same time, Chinese dairy farms are struggling with an oversupply of raw milk. Prices have plunged to around 1 yuan per kilogram, prompting many farmers to cut herd sizes. This oversupply stems from major investments in production over the past few years—investments that now seem to have outpaced actual demand.
And speaking of demand—China’s demographic landscape is evolving fast. With fewer babies and an aging population, the market for infant formula is shrinking. Dairy companies are pivoting their focus to adult and senior nutrition as a result. For example, A2 Milk Co. has rolled out milk powder tailored specifically for older consumers.
Meanwhile, environmental pressure is pushing dairy companies toward greener practices. Mengniu, one of China’s largest dairy firms, has pledged a deforestation-free supply chain by 2030, reflecting the growing global emphasis on sustainability.
All of this means one thing for buyers and suppliers alike: stay informed, stay agile. Market conditions are changing by the month—and your sourcing strategy needs to change with them.
Deep Dive – What’s Making Headlines? Key Recent News & Impacts
While there haven’t been any massive breakthroughs in technology or investments this month, the headlines themselves are enough to shake up sourcing strategies.
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Anti-EU Dairy Probe Extended: China has extended its anti-subsidy probe into EU dairy products, including cheese and milk, until February 2026. This uncertainty might make EU dairy suppliers less appealing in the short term.
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Milk Oversupply Crippling Prices: With prices dropping below sustainable levels, many Chinese dairy farms are downsizing. This could lead to short-term cost advantages for buyers but raises concerns about long-term stability.
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Demographic Shift Changing Demand: Companies are rapidly shifting from baby formula to adult-focused products. If you’re sourcing, this is the time to look at products tailored for aging consumers.
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Sustainability Takes Center Stage: Green sourcing is more than a buzzword—it’s a buyer requirement. Suppliers with strong sustainability credentials will be more competitive.
This is where B2B platforms like Freshdi come in handy. Freshdi provides real-time RFQ (Request for Quote) updates, supplier verification, and market insights tailored to these constantly evolving dynamics.
Top 5 Verified Milk Suppliers in China – Relevant in the Current Climate
We’ve handpicked the top 5 milk suppliers in China for August 2025, based on their current market relevance, export capabilities, certifications, and buyer reviews on platforms like Freshdi.
1. Nanchang Xinduomei Bio-Tech Co., Ltd.
- Specializes in sweet condensed milk flavorings.
- Well-rated for consistency and export-readiness.
- Ideal for food processing industries targeting the adult nutrition market.
2. Shandong Best Harvest Intl Trade Co., Ltd.
- Offers a range of dairy snacks including milk cubes and puffs.
- Great for snack manufacturers and retailers adapting to changing consumer demands.
- Strong Freshdi reviews for packaging and timely delivery.
3. Shantou Desun Foods Co., Ltd.
- Known for oat-choco milk biscuits—perfectly aligned with the wellness trend.
- Appeals to the adult and senior demographic.
- Viewed as an innovative player in the functional dairy food segment.
4. Guangzhou Youzidao Bio Tech Co., Ltd.
- Focuses on concentrated milk and fruit essence for beverages and candies.
- Ideal for beverage manufacturers reworking their offerings for older consumers.
- High scores for purity and flavor consistency.
5. Jiangmen Goody’s Food Co., Ltd.
- Offers a wide range of milk tea powders.
- Strong exporter with a robust presence in Southeast Asia and North America.
- Capitalizes on the booming milk tea trend among younger adults.
Dynamic Ranking Note:
The suppliers listed here are based on current market dynamics, but platforms like Freshdi regularly update rankings with “Suppliers of the Month” or “Quarter,” highlighting those showing recent growth, innovation, or exceptional buyer feedback.
Market Navigation – Strategic Responses to The Current Milk Landscape in China
Navigating China’s milk market in 2025 is like sailing through shifting winds. If you’re sourcing dairy products, you need to be nimble and strategic.
Key Opportunities:
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Leverage Oversupply for Lower Prices: With bulk milk prices at record lows, now is a great time for buyers to lock in contracts. But be cautious—this could lead to shortages later if farmers cut back too much.
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Capitalize on Aging Population Trends: Products like adult nutrition milk powder or functional dairy snacks are seeing surging interest. Align your sourcing accordingly.
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Go Green to Stand Out: Environmentally conscious buyers will favor suppliers with sustainability commitments. Highlight eco-friendly sourcing in your marketing.
Risks to Watch:
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Trade Tensions with the EU: If you depend on EU imports, expect delays or price increases. Consider diversifying your supply base within China or other regions.
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Volatile Supply Chain: With farms reducing herd sizes, today’s oversupply could become tomorrow’s shortage. Build supplier relationships now while availability is high.
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Changing Consumer Preferences: Products that once sold like hotcakes may now be outdated. Keep tabs on what’s trending—Freshdi’s RFQ analytics can help you spot emerging demand in real-time.
Regional Hotspots:
- Inner Mongolia & Heilongjiang remain key dairy-producing regions but are facing the brunt of oversupply.
- Guangdong & Shandong are seeing a rise in value-added dairy production like flavored milk powders and snacks.
Conclusion – Key Takeaways for Businesses in a Dynamic Market
China’s milk market in August 2025 is anything but predictable. From policy crackdowns on EU imports to environmental commitments and demographic-driven shifts in demand, it’s clear that businesses need to stay informed and adaptable.
To sum it up:
- Trade Policy Is Unsettled: Keep alternatives ready in case EU tensions escalate.
- Oversupply Is a Short-term Opportunity, Long-term Concern: Great for price deals now, but could lead to instability.
- Consumer Preferences Are Evolving Fast: Pivot to adult and senior-focused dairy products.
- Sustainability Is Now a Business Imperative: Buyers and consumers alike are watching.
Platforms like Freshdi are invaluable in this environment. With up-to-date supplier verifications, dynamic RFQ tracking, and trend insights, Freshdi empowers buyers to make confident sourcing decisions in real time.
Key Takeaways Checklist for Dairy Buyers in China – August 2025
- ✅ Monitor trade developments with the EU weekly.
- ✅ Prioritize suppliers with flexible production capacities.
- ✅ Source products aligned with adult and senior nutrition.
- ✅ Verify suppliers’ sustainability credentials via platforms like Freshdi.
- ✅ Use RFQ analytics to detect shifts in buyer demand early.
Future Outlook
Looking ahead to late 2025 and early 2026, here’s what could shape the milk market:
- Outcome of the EU dairy probe could redefine import/export dynamics.
- Farm consolidation may reduce oversupply but create new access challenges.
- Sustainability standards may become mandatory, not optional.
- AI-powered sourcing platforms like Freshdi will play an even bigger role in helping businesses pivot fast.
FAQs
1. Why are milk prices in China so low right now?
Due to an oversupply of raw milk. Farms expanded production in recent years, but demand hasn’t kept pace, especially with declining birth rates.
2. What’s the impact of the EU dairy probe on sourcing from China?
It increases uncertainty. China might favor domestic suppliers or non-EU imports, so buyers need to diversify.
3. Are there good alternatives to infant formula for sourcing?
Yes! Products for adult and senior nutrition are gaining popularity, like functional milk powders and fortified snacks.
4. How can Freshdi help me find reliable milk suppliers?
Freshdi offers verified suppliers, RFQ trend data, and buyer reviews to help you make smart, up-to-the-minute sourcing decisions.
5. Is sourcing from China still viable given all these changes?
Absolutely. But success requires staying current, being flexible, and leveraging tools like Freshdi to navigate the evolving landscape.
References:
- China extends probe into EU dairy products
- China’s milk producers target adults as population ages
- China’s milk oversupply to persist in first half of 2025
- China’s dairy industry and climate change
- China’s dairy industry struggles amid milk oversupply