Domestic supplies of raw milk continues to increase in China, despite an oversupply of dairy in the market.

A swathe of new dairy farms are continuing to be built along the east coast, with some of the new farms holding as many as 20,000 cows per unit.

These large farms are being built by State-owned dairy companies and are modelled on US-style high input, high output dairy systems.

The result of the extra milk has put pressure on dairy imports and also smaller, independent dairy farmers who often get paid a lower price for milk than the factory-owned farms. Industry sources say these smaller farmers are getting paid less than the cost of production, with many exiting the sector since 2023.

Bord Bia is leading a trade mission to China this week, being attended by Ministers Charlie McConalogue and Martin Heydon. The objective of the trade mission is to promote Irish dairy, beef, pork and spirits to Chinese buyers. China has a growing middle class who are seeking higher-quality food and drink.