Executive Summary Chinese dairy import figures provided by GTIS were recently updated with values spanning through Feb ’18. Highlights from the updated report include:

• Feb ’18 total Chinese dairy import volumes declined sharply from the January record highs while also finishing 12.7% lower on a YOY basis. The YOY decline in total Chinese dairy import volumes was the first experienced throughout the past nine months.
• Feb ’18 Chinese whole milk powder and skim milk powder imports declined 11.1% and 10.7%, respectively, on a YOY basis throughout the month, each finishing at the fourth highest seasonal figures on record.
• Feb ’18 Chinese dairy imports excluding whole milk powder and skim milk powder also finished lower on a YOY basis, declining 13.9% but remaining at the second highest seasonal figure on record.

Additional Report Details According to GTIS, Feb ’18 total Chinese dairy import volumes declined 50.5% MOM on a daily average basis from the monthly record high experienced during Jan ’18 while also finishing 12.7% lower YOY. The YOY decline in total Chinese dairy import volumes was the first experienced throughout the past nine months. Despite finishing lower on a YOY basis, total Chinese dairy import volumes remained 13.0% above three year average figures for the month of February. Chinese dairy import volumes typically reach seasonal high levels throughout the month of January due to lower tariff rates on milk powder imports offered as part of the New Zealand – China Free Trade Agreement. Jan ’18 Chinese import volumes of New Zealand whole milk powder (WMP) and skim milk powder (SMP) combined to account for 112% of the 2018 annual reduced-tariff milk powder volume quota, compared to 86% of the annual quota consumed within the month of January during 2017. Chinese dairy import volumes originating from New Zealand accounted for over half of all Chinese import volumes experienced throughout Feb ’18. Feb ’18 Chinese import volumes of WMP and SMP declined 11.1% and 10.7%, respectively, on a YOY basis throughout the month, each finishing at the fourth highest seasonal figures on record. Feb ’18 Chinese dairy imports excluding WMP and SMP declined 13.9% YOY, finishing lower on a YOY basis for the first time in the past nine months. Chinese dairy imports excluding WMP and SMP remained at the second highest seasonal figure on record for the month of February, however. Feb ’18 Total Chinese Dairy Imports Declined Sharply From the January Record Highs Feb ’18 Total Chinese Dairy Import Volumes Declined 50.5% MOM and 12.7% YOY Total Chinese Dairy Import Volumes Finished at the Third Highest February Figure on Record Feb ’18 Chinese WMP Import Volumes Declined 61.5% MOM and 11.1% YOY Chinese WMP Imports Finished at the Fourth Highest February Figure on Record Feb ’18 Chinese SMP Import Volumes Declined 56.9% MOM and 10.7% YOY Chinese SMP Imports Finished at the Fourth Highest February Figure Feb ’18 Chinese Dairy Imports Excluding WMP & SMP Declined 38.8% MOM and 13.9% YOY Chinese Dairy Imports Excluding WMP & SMP Remained at the Second Highest Feb Figure New Zealand Accounted for Over Half of the Total Feb ’18 Chinese Dairy Imports Feb ’18 New Zealand Share of Total Chinese Dairy Imports Increased Most Significantly YOY