Everbright Securities released a research report saying that the early expansion of upstream animal husbandry combined with weak downstream demand after the epidemic, and the gap between supply and demand caused raw milk prices to drop all the way down. Over the past 25 years, along with continuous degeneration of cows and stability on the demand side, raw milk prices have fluctuated at the bottom. Entering 2026, the price of beef cattle has risen further, the deactivation of stocks continues, and raw milk prices have shown signs of recovery. Moreover, during this round of removal, head ranches are more resilient to risks, small and medium-sized ranches have been cleared one after another, and industry concentration has increased. As leading ranches, Youran Animal Husbandry and Modern Animal Husbandry are backed by leading dairy companies represented by Irimon Cows. They have bucked the trend and expanded their inventory in recent years, and the subsequent steady upward cycle of milk prices is expected to expand their competitive advantage. Combined with improved expectations for biological asset impairment, the profit side is expected to unleash greater flexibility.

Everbright Securities released a research report saying that the early expansion of upstream animal husbandry combined with weak downstream demand after the epidemic, and the gap between supply and demand caused raw milk prices to drop all the way down. Over the past 25 years, along with continuous degeneration of cows and stability on the demand side, raw milk prices have fluctuated at the bottom. Entering 2026, the price of beef cattle has risen further, the deactivation of stocks continues, and raw milk prices have shown signs of recovery. Moreover, during this round of removal, head ranches are more resilient to risks, small and medium-sized ranches have been cleared one after another, and industry concentration has increased. As leading ranches, Youran Animal Husbandry and Modern Animal Husbandry are backed by leading dairy companies represented by Irimon Cows. They have bucked the trend and expanded their inventory in recent years, and the subsequent steady upward cycle of milk prices is expected to expand their competitive advantage. Combined with improved expectations for biological asset impairment, the profit side is expected to unleash greater flexibility.