Changes in Hong Kong stocks | Dairy stocks have the highest increase, institutions say that the elimination of dairy cows is expected to accelerate raw milk prices or welcome an upward inflection point in prices

The Zhitong Finance App learned that dairy stocks had the highest gains. As of press release, Mengniu Dairy (02319) rose 4.22% to HK$18.29; Modern Animal Husbandry (01117) rose 4.14% to HK$1.51; Youran Animal Husbandry (09858) rose 3.51% to HK$3.985; and China Feihe (06186) rose 2.06% to HK$2.72.

According to the news, according to statistics from the Ministry of Agriculture and Rural Affairs, as of September 24, the average price of raw milk in major domestic production areas was 3.09 yuan/kg, +0.32% month-on-week and +1.64% year-on-year. Under the current price of raw milk, the industry is generally in a state of cash loss. Subsequent increases in meat prices stimulate elimination, production capacity is expected to accelerate elimination, and subsequent capacity reduction will involve large-scale production capacity, and raw milk prices are expected to usher in an upward price inflection point.

Everbright Securities pointed out that the early expansion of the upstream animal husbandry industry compounded the weakness of 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.