The raw milk market operates at a low price, and dairy companies increase their income but do not increase profits
Due to oversupply, raw milk** continued to decline, resulting in the compression of profit margins of dairy companies. At the same time, the performance of upstream dairy enterprises has generally declined, and inventories have increased, further exacerbating the industry's predicament. With the diversification of consumer demand for dairy products, the phenomenon of product homogenization is serious, leading to increased competition. At the same time, although the trend of consumption recovery has not changed, the speed of recovery of demand is still uncertain, which brings uncertainty to the recovery of the dairy market.
The domestic dairy industry is undergoing the process of reshaping the pattern and survival of the fittest, and large-scale, intensive and specialized production methods are becoming the mainstream, and the living space of small and medium-sized dairy enterprises is being squeezed. In order to respond to market changes and meet consumer needs, dairy enterprises need to increase investment in R&D and product innovation to improve the added value and market competitiveness of products. With the complexity of the international environment, dairy enterprises need to pay attention to the dynamics of the international market, improve their international competitiveness, and also deal with the challenges from international competitors.
Optimize the industrial structure
Through mergers and acquisitions, large-scale and intensive production is realized, reducing costs and improving market competitiveness. At the same time, strengthen cooperation and exchanges within the industry to jointly respond to market risks. Improve product quality and added value through technological innovation and R&D, and promote product upgrading and differentiated competition. At the same time, we pay attention to the research and development and application of new raw materials and processing technologies. Strengthen communication and interaction with consumers to increase brand loyalty. Reduce costs and improve efficiency by optimizing the first-chain management and logistics system. At the same time, pay attention to the development of cold chain logistics to ensure product quality and transportation safety. The surplus of raw milk will gradually ease, and next year's dairy products will be mainly low, and whether it can pick up mainly depends on the degree of improvement on the demand side. In the case of intensified competition in the industry due to insufficient demand, dairy enterprises with strong product strength and greater channel expansion space are more able to pass through the cycle and be more resilient after demand recovers.
At present, the general trend of consumption recovery has not changed, and it will not take too long for China's dairy industry to get out of the trough.