Raw milk production has fallen for the first time in seven years, and the turning point for milk prices may appear in the second half of the year.

After three years of bottom adjustment, China's dairy Farming has entered a period of accelerated transformation. Several raw milk listed companies recently released their Earnings Reports indicating that in 2024, the raw milk production in China will reach 40.79 million tons, marking the first decline since 2018, with a noticeable acceleration in the clearing pace of ranch production capacity. Industry analysts believe that in this round of Industry integration, a large number of small and medium-sized dairy farms with low efficiency will be eliminated, and appropriately reducing capacity will help alleviate the current oversupply of milk sources and the sluggish milk prices. Based on signals released from the Earnings Reports and performance briefings of Inner Mongolia Yili Industrial Group, CH MODERN D, AUSTASIA GROUP, and other companies, this round of deep adjustment in the dairy Industry may see a turning point in the second half of the year. (Xinjingbao)