In this paper, the concept of virtual demand of raw milk was introduced first, then the forecasting model of China's virtual demand of raw milk was established. Applied the model, we got that the virtual demand of raw milk would reach 47.466 million tons, 49.776 million tons and 52.12 million tons respectively in year 2011-2013. Applied grey relational analysis, it is estimated that the demand and supply degree of raw milk in China from 2011 to 2013 is 0.64, which means there will be serious imbalance between supply and demand of raw milk in China