Relevant background Since mid-August, the auction price of Fonterra raw milk has gradually risen. International raw milk prices, which have been at the bottom for more than a year, have seen hope of recovery. As the only raw milk export target in the A-share market, there is little research on the western animal husbandry market, and the overall situation of the company is not understood by investors. How much flexibility can the rise in domestic raw milk prices actually bring to the performance of the western animal husbandry industry is the core issue that this paper wants to solve. Conclusion: The price of fresh milk is expected to reach 3.9 yuan/kg in 2017, corresponding to fresh milk revenue of 189 million yuan, +454% over the same period last year. The total milk production volume of self-production+joint ventures in 2016-2018 was estimated at 89,600 tons/159,000 tons/215,000 tons, respectively, with significant increases. Under the premise that the company maintains its current herd size, we expect that when the price of raw milk rises to 3.9 yuan/4.5 yuan in 2017/2018, the company will achieve net profit of 17.51 million/67.17 million yuan, corresponding to EPS 0.083/0.318 yuan. The price of raw milk increased by 0.1 yuan in 2017, corresponding to the company's EPS increase of 0.019 yuan.