Executive Summary Chinese dairy import figures provided by GTIS were recently updated with values spanning through Dec ’16. Highlights from the updated report include:

• Dec ’16 total Chinese dairy import volumes declined on a YOY basis for only the second time in the past 17 months, finishing 2.5% below the previous year.
• Chinese dairy import volumes originating from the EU-28 were particularly weak, finishing at a ten month low during Dec ’16. The 21.6% YOY decline in Chinese dairy import volumes originating from within the EU-28 more than offset a 26.6% YOY increase in import volumes originating from within New Zealand.
• Dec ’16 Chinese dairy imports excluding whole milk powder and skim milk powder declined a YOY basis for the first time in 20 months, finishing down 13.1%, but remained at the second highest December figure on record.

Additional Report Details According to GTIS, Dec ’16 total Chinese dairy import volumes declined 11.9% MOM on a daily average basis from the eight month low experienced during the previous month while also finishing lower on a YOY basis, declining 2.5%. The YOY decline in total Chinese dairy import volumes was only the second experienced throughout the past 17 months. Import volumes originating from within New Zealand exceeded volumes originating from within the EU-28 for the second consecutive month during Dec ’16, as volumes destined from the EU-28 fell to a ten month low, finishing 21.6% below the previous year volumes. Volumes originating from within New Zealand and the EU-28 continued to account for over 70% of the total Chinese dairy import volumes throughout the month as volumes originating from within New Zealand finished 26.6% above the previous year volumes. Dec ’16 Chinese whole milk powder (WMP) import volumes increased on a YOY basis for the second consecutive month, finishing up 98.6%, however skim milk powder (SMP) import volumes declined on a YOY basis for the first time in three months, finishing 26.8% below the previous year. Chinese WMP import volumes finished at a three year high for the month of December while SMP import volumes declined to a four year low for the month of December. Dec ’16 Chinese dairy imports excluding WMP and SMP declined on a YOY basis for the first time in 20 months, finishing down 13.1%, but remained at the second highest December figure on record. Dec ’16 Total Chinese Dairy Import Volumes Declined From the Previous Eight Month High Dec ’16 Total Chinese Dairy Import Volumes Declined 11.9% MOM and 2.5% YOY Total Chinese Dairy Import Volumes Remained at the Third Highest December Figure Dec ’16 Chinese WMP Import Volumes Increased 8.4% MOM and 98.6% YOY Chinese WMP Imports Finished at a Three Year High for the Month of December Dec ’16 Chinese SMP Import Volumes Declined 7.8% MOM and 26.8% YOY Chinese SMP Imports Finished at a Four Year Low for the Month of December Dec ’16 Chinese Dairy Imports Excluding WMP & SMP Declined 17.1% MOM and 13.1% YOY Chinese Dairy Imports Excluding WMP & SMP Remained at the Second Highest Dec Figure New Zealand Accounted for Over a Third of the Total Dec ’16 Chinese Dairy Import Volumes