Core Insights - The core ingredients such as whey protein and lactoferrin are essential for infant formula and functional foods, but the industry heavily relies on imports, putting the domestic sector in a passive position [1] - The chairman of China Feihe, Leng Youbin, suggests enhancing core technology and deep processing to increase the added value of raw milk and optimize product structure, focusing on high-value products to promote the transformation and high-quality development of the dairy industry [1] Industry Structure - There is a significant imbalance in China's dairy product industry structure, with liquid milk accounting for 92.7% of the market, while high-value products like cheese and butter make up less than 7.3%, contrasting with developed countries like the Netherlands and France, where the ratio is approximately 5:5 [1] - The urgent need for structural upgrades and extending the value chain in the dairy industry is emphasized [1] Policy Recommendations - Leng Youbin recommends increasing policy support, improving regulations, assessment systems, and testing technologies, and enhancing professional talent training [2] - A target of over 60% domestic production rate for core ingredients like whey protein is suggested for the 14th Five-Year Plan to ensure a self-controlled supply chain in the dairy industry [2] - The need for timely adjustments to laws and regulations, industry standards, and approval processes for new technologies and products in dairy processing is highlighted [2] Talent Development - The dairy deep processing sector is identified as a multidisciplinary frontier with a shortage of specialized talent [2] - A proposal to cultivate over a thousand internationally competitive core R&D and engineering talents through interdisciplinary training and curriculum innovation is made to support high-quality development in the dairy industry [2]