Core Insights - The National Dairy Technology Innovation Center introduced innovations in dairy deep processing technology and industry development at the 22nd Annual Meeting of the Chinese Society of Food Science and Technology [1] - The center aims to accelerate the industrial application of technological achievements during the "14th Five-Year Plan" period by establishing deep processing demonstration lines [1] Industry Overview - Dairy products have comprehensive and balanced nutritional components, beneficial for various demographics including children, the elderly, and athletes [1] - The extraction of functional components from milk is challenging; for instance, approximately 14 tons of milk are needed to extract 1 kilogram of lactoferrin, necessitating deep processing techniques for efficient extraction [1] Market Dynamics - The deep processing of dairy products can optimize market offerings and expand market boundaries [1] - China heavily relies on imports for deep processed dairy products, with 661,000 tons of whey powder expected to be imported in 2024 [1] Policy and Investment - The Chinese government emphasizes original innovation and key technology breakthroughs in its 14th Five-Year Plan [1] - The Ministry of Industry and Information Technology initiated a project to enhance the supply capacity of demineralized whey products, with leading dairy companies submitting investment proposals totaling billions [1] Company Initiatives - Yili Group is constructing a leading global dairy deep processing factory in Hohhot, capable of producing demineralized whey, lactoferrin, and other deep processed products [1] - The National Dairy Technology Innovation Center, led by Yili Group, is the only national-level technology innovation center in China's food sector, achieving several leading results in deep processing [1]

Core Insights - The dairy market is transitioning from "basic nutrition" to "functional precision," with increasing consumer demand for natural, functional, and precise dairy products [1][3] - The supply side is focusing on the challenges of deep processing in dairy products, emphasizing technological innovation to meet the upgraded consumer demand [1][3] Industry Trends - China's raw milk quality has reached an international advanced level, but the deep processing capacity of dairy products remains insufficient, with a low proportion of high-value-added products [3][6] - The domestic surplus of milk supply and declining milk prices present opportunities for deep processing in the dairy sector [3][6] - The dairy market is experiencing continuous expansion and accelerated segmentation, with the entire chain from "raw milk - basic processing - deep manufacturing" entering a fast upgrade phase [3][6] Technological Innovations - Experts at the recent seminar discussed breakthroughs in deep processing technologies, including whey protein, milk fat globule membrane, and milk protein ingredients, providing reference paths for technology selection and industrialization [3][4] - The focus is shifting from utilizing cheese by-products to the industrialization of high-value functional proteins, aiming for continuous, precise, and low-allergen technology routes [3][6] Company Developments - Yili Group has increased its R&D investment by 11.4% year-on-year in the first half of the year, focusing on high-value-added dairy products [6] - The company has successfully developed several deep processing technologies, significantly reducing costs and making previously expensive products like lactoferrin accessible to the mass market [6] - Yili's new lactoferrin factory in New Zealand is set to be completed by 2025, aiming to support domestic research and industrial applications [5][6]