China has broadened its anti-subsidy probe into EU dairy imports, now targeting additional subsidy programs in several EU countries. This follows the EU’s imposition of tariffs on Chinese electric vehicles.
China’s commerce ministry has expanded its investigation into EU dairy products, adding more subsidy programs to the scope of its anti-subsidy inquiry. Initially launched in August, the investigation now includes additional programs in Denmark, France, Italy, and the Netherlands. The move comes as a response to new tariffs imposed by the European Union on Chinese electric vehicles in late October.
While the expanded investigation does not include new dairy products, it incorporates the claims made by the Chinese dairy industry and results from consultations with EU representatives. “On Nov. 19, the investigating authorities held consultations with EU representatives regarding the new programs to be added,” the ministry stated in a press release.
The EU remains China’s second-largest dairy supplier, after New Zealand, with dairy products, especially milk powder and cheese, making up a significant portion of EU exports to China. The expansion of the probe highlights the growing tension between the two economies over trade and subsidies.
This move underscores the increasingly complex relationship between the EU and China, as both sides grapple with trade policies that affect industries beyond just dairy, reflecting broader global economic shifts.
EU MILK PRODUCTION RISES IN 2023
EU milk production reached an estimated 160.8 million tonnes in 2023, marking a modest rise of 0.8 million tonnes from the previous year. Compared to 2013, the production has grown significantly by 15.8 million tonnes, according to Eurostat, the statistical office of the EU.
The majority of the milk produced, 149.3 million tonnes, was directed to dairies, where it was processed into a variety of dairy products. The breakdown of dairy production showed that 22 million tonnes of milk were used for drinking milk and 7.8 million tonnes for acidified products like yoghurt. However, the largest portion was used for cheese and butter production, with 58.2 million tonnes of whole milk and 17.4 million tonnes of skimmed milk going towards cheese, while 45.4 million tonnes of whole milk was used to make 2.3 million tonnes of butter.
Germany led the EU’s milk production, contributing to 19% of drinking milk, while also being a key producer of butter, cheese, and acidified products. Spain and France followed in the production of drinking milk, while France, Italy, and Ireland were significant players in butter and cheese production.
The data from Eurostat highlights a steady growth trend in milk production across the EU, especially in dairy product outputs, emphasizing the region’s dominant role in the global dairy market.