Core Viewpoint - The proposals submitted by Leng Youbin, Chairman of China Feihe, during the 2026 National People's Congress focus on promoting high-quality protein intake and enhancing deep processing in the dairy industry, addressing critical issues in China's dairy and food sectors [1][2]. Industry Challenges - The Chinese dairy industry faces a structural imbalance, with a significant surplus of raw milk leading to industry losses in the billions, while public awareness of protein nutrition remains insufficient [2][3]. - The current product structure in China is heavily skewed towards liquid milk, with over 92.7% of production, while high-value products like cheese and butter account for less than 7.3% [3][4]. - The domestic dairy industry has experienced a cumulative income loss of 70 billion yuan from 2023 to 2025, with losses from fresh milk powder reaching 20 billion yuan [3][4]. Proposed Solutions - Leng Youbin suggests that the government should set a target for domestic production of key raw materials like whey protein at over 60% during the 14th Five-Year Plan, to ensure a self-sufficient supply chain [6][19]. - There is a call for increased support for deep processing enterprises in the dairy sector through tax incentives, talent development, and regulatory support [6][19]. Company Initiatives - China Feihe has been pioneering in the dairy industry for 20 years, establishing a complete supply chain from farming to production, with 100% self-controlled milk sources [7][9]. - The company has developed advanced protein deep processing technologies, achieving 100% self-sufficiency in 11 key raw materials by 2025 [9][10]. - Feihe has launched a fresh raw material traceability system, enhancing supply chain transparency and efficiency [11][12]. Nutritional Focus - The emphasis on protein intake is critical for public health, especially in the context of an aging population, with 45% of adults and nearly 90% of the elderly reportedly consuming insufficient protein [17][18]. - The global market for casein is projected to reach $49.8 billion by 2030, highlighting the growing demand for protein supplements [15][18]. Strategic Importance - The proposals reflect a broader strategy to elevate the quality of protein supply in China, aligning with national health goals and addressing the urgent need for high-quality protein sources [14][20]. - The focus on domestic production of key protein ingredients is essential for ensuring food security and reducing reliance on imports, particularly in light of geopolitical uncertainties [18][19].