The European dairy industry could be in big trouble

China may impose punitive tariffs on certain dairy products from the EU. The measure is retaliation for anti-dumping duties imposed by the European Commission on electric cars from China. European dairy farmers risk becoming proverbial "puppets" in the trade conflict between China and the EU over the import of cheap electric cars - which could have negative consequences for European milk prices. China's Ministry of Commerce has announced that it will investigate import restrictions on dairy products from FrieslandCampina of the Netherlands and Belgium, Elvi of France and Sterilgarda of Italy. These dairies were selected for their export volume and product portfolio. According to Eurostat data, EU dairies exported a total of EUR 1.8 billion worth of dairy products, such as cheese and milk powder, to China last year. This made the EU the most important supplier of dairy products to the Asian country. If this sales market collapses, the currently good milk prices could be negatively ...