China's dairy industry is currently grappling with a significant oversupply issue, producing 42 million tonnes of milk amidst falling demand. This imbalance is a result of the country's push towards food self-sufficiency, which saw milk output rise from 30.39 million tonnes in 2017 to nearly 42 million tonnes by 2023, surpassing the 2025 target of 41 million tonnes. This increase was supported by substantial investments in farms and the import of high-yield cows.