Core Viewpoint - New Five Feng (600975.SH) aims to enhance its profitability and competitive advantage in the pig breeding and nutrition research sector through the establishment of a technology innovation base project, with a total investment of approximately 200 million yuan [1] Group 1: Project Overview - The project, named "New Five Feng Technology Innovation Base Project (Phase I)," will cover a total construction area of 20,634.65 square meters [1] - The core focus of the project is to serve as a research and development platform for the pig industry, emphasizing long-term investment in scientific research [1] Group 2: Strategic Goals - The project aims to improve breeding production efficiency, optimize feed formulas, upgrade raw material substitution solutions, and iterate on environmental protection technologies [1] - The initiative will also involve the intelligent transformation of facilities and equipment, development of deep processing of meat products, and enhancement of digital empowerment [1] Group 3: Business Impact - By implementing cost-reduction measures and advancing product research and production, the project is expected to effectively empower the company's main business [1] - The focus on "controlling breeding costs" is intended to drive the company's sustained growth while addressing cyclical challenges and market competition [1]

1. Report Industry Investment Rating - No information provided regarding the industry investment rating. 2. Core Viewpoints - In the short - term, the supply pressure of live pigs is alleviated as the large - scale farms' slaughter progress is normal in the second half of the month, the slaughter pressure at the end of the month decreases, the supply of fat pigs is low, and some second - fattening farmers' willingness to enter the market increases. On the demand side, the activities of curing bacon and making sausage are increasing, and there is stocking demand before the New Year's Day, so the terminal consumption is good, which supports the price. Overall, the supply - demand pattern improves in the short - term, boosting the short - term strong - side oscillation of live pig prices. In the medium - term, the supply pressure still exists, and as the price rises further, the acceptance of the demand terminal will decline, and the attitude of second - fattening farmers will become more cautious, so the medium - term upward space is expected to be limited [6]. 3. Summary by Relevant Catalogs 3.1 Week - to - Week Summary - The live pig price rebounded, and the main contract 2603 rose 2.83% weekly [6][10]. - In the near term, the supply - demand situation improves, but in the medium - term, the upward space is limited [6]. 3.2 Futures Market - The futures price rebounded this week, with the main contract 2603 rising 2.83% weekly [10]. - As of December 26th, the net short position of the top 20 holders of live pig futures increased by 5323 hands to 51717 hands, and the number of futures warrants was 863, an increase of 40 from the previous week [16]. - The spread between lh2603 and lh2605 contracts was - 445, and the spread between lh2603 and lh2607 contracts was - 1120 [21]. 3.3 Spot Market - This week, the basis of the live pig 1 - month contract was 500 yuan/ton, and the basis of the 3 - month contract was 155 yuan/ton [26]. - The national average price of live pigs was 11.62 yuan/kg, a decrease of 0.01 yuan/kg from the previous week, and the average price of 15 - kg weaned piglets was 23.38 yuan/kg, unchanged from the previous week [36]. - As of the week of December 18th, the national average pork price was 22.53 yuan/kg, a decrease of 0.06 yuan/kg from the previous week, and the average price of binary sows was 32.46 yuan/kg, unchanged from the previous week [40]. - As of the week of December 10th, the pig - grain ratio was 5.18, a decrease of 0.03 from the previous week [44]. 3.4 Upstream Situation - In October 2025, the number of reproductive sows was 39.9 million, a month - on - month decrease of 1.12% and a year - on - year decrease of 2.038%, falling below 40 million for the first time since June 2024. In November, according to Mysteel data, the number of reproductive sows in large - scale farms decreased by 0.37% month - on - month and increased by 0.07% year - on - year, and in small and medium - sized farms decreased by 0.78% month - on - month and increased by 0.78% year - on - year [49]. - At the end of the third quarter of 2025, the number of live pigs was 436.8 million, a month - on - month increase of 2.9% and a year - on - year increase of 2.3%. In November, according to Mysteel data, the number of commercial pigs in large - scale farms increased by 0.32% month - on - month and 5.28% year - on - year, and in small and medium - sized farms decreased by 0.07% month - on - month and increased by 6.94% year - on - year [53]. - In November, according to Mysteel data, the number of commercial pigs slaughtered in large - scale farms was 11.3649 million, a month - on - month decrease of 0.65% and a year - on - year increase of 5.59%, and in small and medium - sized farms was 0.5151 million, a month - on - month decrease of 2.03% and a year - on - year increase of 29.75%. The average slaughter weight of live pigs was 123.55 kg, a decrease of 0.12 kg from the previous week [58]. 3.5 Industry Situation - As of December 26th, the loss of purchasing piglets for breeding was 162.8 yuan/head, a reduction of 26.7 yuan/head, and the loss of self - breeding and self - raising was 130.11 yuan/head, a reduction of 0.76 yuan/head. The profit of laying hens was - 0.47 yuan/head, a week - on - week decrease of 0.11 yuan/head, and the profit of 817 broilers was 0.01 yuan/head, a week - on - week decrease of 0.03 yuan/head [63]. - From January to November 2025, the cumulative pork imports were 920,000 tons, with an average of 83,600 tons per month. In November, the pork import volume was 60,000 tons, a year - on - year decrease of 33.33% [64][68]. - As of the week of December 26th, the price of白条鸡 was 14.1 yuan/kg, unchanged from the previous week. As of the week of December 25th, the average price difference between standard and fat pigs was - 0.61 yuan/kg, an increase of 0.13 yuan/kg from the previous week [73]. - As of December 26th, the spot price of soybean meal was 3174.86 yuan/ton, an increase of 37.72 yuan/ton from the previous week, and the price of corn was 2338.63 yuan/ton, a decrease of 10 yuan/ton from the previous week [78]. - As of December 26th, the closing price of the Dalian Commodity Exchange's pig feed cost index was 894.54, and the price of finishing pig feed was 3.33 yuan/kg, unchanged from the previous week [81]. - In November 2025, the monthly feed output was 29.77 million tons, a month - on - month increase of 209,000 tons, and the sales of piglet feed increased by 0.42% month - on - month and 53.28% year - on - year [85]. - As of November 2025, China's CPI increased by 0.7% year - on - year [89]. 3.6 Downstream Situation - In the 52nd week, the slaughtering enterprise's operating rate was 40.24%, an increase of 0.37 percentage points from the previous week and 1.16 percentage points from the same period last year. The fresh - meat sales rate of key slaughtering enterprises was 87.42%, a decrease of 0.44% from the previous week, and the frozen - product storage rate was 18.20%, an increase of 0.01% from the previous week [92]. - As of October 2025, the slaughter volume of designated live - pig slaughtering enterprises was 38.34 million, a month - on - month increase of 6.98% and 33.31%. In November 2025, the national catering revenue was 605.7 billion yuan, a year - on - year increase of 3.2% [97]. 3.7 Live Pig Stocks - The report shows the trend charts of Muyuan Co., Ltd. and Wens Co., Ltd. but does not give specific analysis [98][100].

Economic News - The Ministry of Ecology and Environment proposed to strengthen cybersecurity and information technology infrastructure, integrating big data, AI, and blockchain with ecological governance [1] - The Fengtai District of Beijing has registered a government industrial investment fund matrix with an initial scale of no less than 10 billion yuan, expected to launch in 2026 [1] - Hainan Province reported over 400 million yuan in "zero tariff" imports during the first week of its customs closure, indicating ongoing policy benefits and enhanced industrial momentum [1] - The National Development and Reform Commission emphasized industry management, focusing on reducing crude steel output while promoting technological innovation in key industries [1] - The National Venture Capital Guidance Fund has officially launched, with a target scale of 50 billion yuan for the Beijing-Tianjin-Hebei region fund [1] - Japan's government approved a record budget of approximately 122.3092 trillion yen for the fiscal year 2026 [1] - As of the end of November, China's total installed power generation capacity reached 3.79 billion kilowatts, a year-on-year increase of 17.1% [1] - The photovoltaic industry association confirmed the establishment of a polysilicon capacity integration acquisition platform to address intense competition in the sector [1] - The State-owned Assets Supervision and Administration Commission initiated pilot projects for data resource development among state-owned enterprises [1] - A new national standard for electric vehicle energy consumption will be implemented starting January 1, 2026, marking a global first [1] Company News - Landun Optoelectronics holds a 4.9533% stake in Shanghai Xingsi Semiconductor through its wholly-owned subsidiary, focusing on 5G and satellite communication applications [2] - Defang Nano plans annual equipment maintenance from December 26, 2025 [2] - Zhongwei Co. signed a strategic cooperation framework agreement with Xinwanda Power Technology to develop solid-state battery materials [4] - Jinlongyu intends to establish an industrial merger and acquisition fund with a subscribed scale of 1.5 billion yuan [4] - Del's shares are advancing the construction of a solid-state battery pilot line, expected to be completed in the first half of 2026 [4] Industry Research - The Ministry of Commerce announced anti-dumping duties on EU pork imports, effective December 17, 2025, with rates ranging from 4.9% to 19.8% [5] - EU pork imports accounted for 51% of China's total pork imports, but only 2.03% of total consumption, indicating a limited impact on the overall market [6] - The anti-dumping duties are expected to reduce EU pork imports, leading to a diversification of import sources for China [6] - The domestic pork market remains under pressure, with a breeding sow inventory of 39.9 million heads, indicating a continued oversupply [7] - The anti-dumping measures are anticipated to improve the domestic supply-demand balance in the short term, with a focus on enhancing breeding efficiency and reducing costs [7] - The dairy industry is facing challenges due to low domestic milk prices, with a need to accelerate the development of deep processing of dairy products [12] - The temporary anti-subsidy measures on EU dairy products are expected to benefit domestic companies engaged in high-value-added processing [12]

回锅肉、红烧肉、狮子头、锅包肉……这些以猪肉为主要食材、居民耳熟能详的家常菜随处可见。菜系 的丰盛、口味的多元背后既反映了国内需求不断提升，又凝聚了生猪育种多年来的持续突破和产业发展 的结晶。养好一头猪，"科技+育种"无疑是关键。 "这个芯片提高了基因组育种值预测的准确性，带动分子育种检测成本大幅下降、检测效率有效提 升。"吴珍芳说。 我国90%以上的猪肉由杜洛克、长白、大白3个世界通用的瘦肉型生猪品种通过杂交生产，这3个品种引 入我国后已进行了40余年的本土化选育。在广东中芯种业科技有限公司的养殖场内，华南农业大学教 授、国家生猪种业工程技术研究中心主任吴珍芳正带着几位研究生分析围栏内种猪的发育情况。"目前 国产生猪种源市场占有率达到95%，前10%的核心群整体性能已经基本达到国际先进水平。"吴珍芳告 诉记者。 2024年，我国生猪出栏量达到7亿头、规模化生产遍布全国；猪肉产量5706万吨，占全国猪牛羊禽肉产 量比重接近60%。市场需求推动各养猪企业从传统模式向数字化、智能化转型。温氏集团通过与华为合 作，从育种到养殖出栏实现高效可视化管理，养殖场有专属"AI兽医"提供初步诊断结果和建议；监控屏 幕全时掌控 ...

Group 1: Report Information - Report Name: Pig Daily Report [1] - Date: December 26, 2025 [2] Group 2: Industry Investment Rating - No relevant information provided Group 3: Core Viewpoints - The spot market is expected to fluctuate as supply and demand both increase, but demand has weakened after the Winter Solstice. The futures market is under pressure on the 01 and 03 contracts due to increased supply, but the 03 contract may be relatively favorable after the Spring Festival, with increased bottom - oscillation frequency. The progress of the epidemic needs continuous tracking [9] Group 4: Summary by Directory 1. Market Review and Operation Suggestions - **Market Conditions**: On the 25th, the main 2603 contract of live pigs opened slightly lower, then rose and fell in a volatile manner, closing down. The highest was 11,540 yuan/ton, the lowest was 11,410 yuan/ton, and the closing price was 11,460 yuan/ton, up 0.17% from the previous day. The total open interest of the index increased by 2,496 lots to 347,337 lots. The national average price of foreign ternary pigs was 11.58 yuan/kg, up 0.01 yuan/kg from the previous day [8] - **Analysis**: In the long - term, pig slaughter is expected to increase slightly until the first half of next year. The utilization rate of second - fattening pens is slightly higher than last year, increasing supply pressure before the Spring Festival. The planned slaughter of sample breeding enterprises in December is 27.72 million heads, a monthly increase of 4.64%. Currently, the overall slaughter rhythm of the breeding side is normal. Secondary fattening is mainly in a wait - and - see state with a small amount of rolling replenishment demand. Due to the continuous cooling, the demand for curing and sausage - making has increased, and terminal consumer demand has continued to rise. However, after the Winter Solstice stocking, the slaughter rate and volume of slaughtering enterprises have slightly decreased. The anti - dumping tax on imported pork from the EU has a limited impact [9] 2. Industry News - No specific news content provided 3. Data Overview - In November, the actual slaughter volume of Yongyi sample enterprises was 26.49 million heads, with a completion rate of 99.36%. The planned slaughter in December is 27.72 million heads, a monthly increase of 4.64% and a daily average increase of 1.27% - The average market sales price of 15 - kg piglets is 306 yuan/head, up 1 yuan/head from last week - As of December 18, the average profit per self - bred and self - raised pig was - 119.8 yuan/head, a weekly increase of 26.7 yuan/head; the average profit per pig raised with purchased piglets was - 238.2 yuan/head, a weekly increase of 26.2 yuan/head. The expected cost of self - bred and self - raised pigs was 12.09 yuan/kg, unchanged from last week. The expected cost of fattening purchased piglets to 125 kg for slaughter was 11.42 yuan/kg, up 0.01 yuan/kg from last week - As of the week of December 18, the average slaughter weight of live pigs was 130.18 kg, up 0.55 kg from last week, a weekly increase of 0.42%, up 1.37 kg from last month, a monthly increase of 1.06%, and down 0.50 kg from the same period last year, a year - on - year decrease of 0.38% [14]

Core Viewpoint - The pig farming industry in China is facing a challenging environment in 2025, characterized by supply-demand imbalance, declining prices, and expanding losses, leading to a significant restructuring of the industry [1] Industry Status: Supply High and Losses Widen - In 2025, the overall supply of pigs remains high, exacerbating market supply-demand conflicts, with a total pig output of 530 million heads in the first three quarters, a slight increase of 1.85% year-on-year [2] - As of the end of Q3 2025, the national pig inventory reached 43.68 million heads, an increase of 2.3% year-on-year and 2.9% quarter-on-quarter [2] - The core issue of high supply is that the breeding sow inventory remains above the reasonable level, with 40.35 million heads as of September 2025, exceeding the reasonable holding level by 3.5% [2] - The oversupply has led to a downward trend in pig prices, which fell from 15-16 CNY/kg at the beginning of the year to around 11-12 CNY/kg in Q4 2025 [2] - The decline in prices has pushed farming profitability into the loss zone, with average losses per head reaching 122 CNY by November 2025 [3] Impact on Farmers and Enterprises - The widening losses are straining the cash flow of small and medium-sized farmers, while some leading listed companies are responding by cutting capital expenditures and reducing sow inventories [6] - The price of piglets has significantly dropped, with 7 kg piglets selling for 209 CNY/head, well below production costs [6] Policy and Market Dynamics Driving Capacity Reduction - The continuous decline in pig prices has led to widespread losses in the industry, but 2026 may bring a turning point due to the combined effects of policy and market forces [8] - Policy measures are becoming a key driver for capacity reduction, with the Ministry of Agriculture and Rural Affairs emphasizing "anti-involution" and capacity control [8] - Leading enterprises are proactively reducing production capacity by halting new pig farm constructions and culling inefficient sows [8] - Market forces are also compelling capacity reduction, as the willingness of farmers to replenish stock has dropped significantly, with a 1.1% month-on-month decrease in sow inventory in October 2025 [9] Historical Context and Future Outlook - Historically, when both piglet and fat pig prices are low, capacity reduction accelerates, and the current conditions meet this criterion [12] - The industry is experiencing significant cost differentiation, with leading companies achieving lower production costs compared to smaller firms, which is driving further industry concentration [12] - By 2026, the industry may see a new cycle beginning, with supply pressures easing and potential price increases anticipated in the latter half of the year [13] - The current phase of losses and peak capacity typically indicates the establishment of an upward trend for the sector, suggesting investment opportunities as valuations remain low [14]

Core Viewpoint - The report from China Merchants Securities indicates an improvement in economic conditions this week, particularly in the resource, midstream manufacturing, and information technology sectors [1] Resource Sector - Prices for metals, steel, and coal have mostly increased, with the national cement price index also rising [4] - Industrial metal prices have generally gone up, including copper, nickel, aluminum, tin, cobalt, and lead, while zinc prices have decreased [4] - Brent crude oil prices have risen, and the chemical product price index has shown a week-on-week increase, although most chemical prices have declined [4] Midstream Manufacturing - Prices for upstream products in the new energy vehicle sector have mostly increased, and the price index for photovoltaics has risen week-on-week [3] - The production of metal forming machine tools has shown an expanding year-on-year growth rate for November, while the production of packaging equipment has seen a larger decline [3] Information Technology - The Philadelphia Semiconductor Index, Taiwan Semiconductor Industry Index, and DXI Index have all increased this week [2] - Prices for DDR5 and DDR4 DRAM memory have risen month-on-month, and the telecommunications main business revenue has shown an expanding year-on-year growth rate for November [2] Consumer Demand - Prices for fresh milk and pork have increased, while the wholesale price of piglets has decreased [3] - The average ticket revenue for films has risen, indicating a potential recovery in the entertainment sector [3] Financial and Real Estate - The net absorption in the money market has been noted, with a decline in A-share turnover rate and daily transaction volume [4] - The transaction area for commercial housing has increased, while the listing price index for second-hand houses has decreased [4]

Core Viewpoint - The pig farming industry in China is facing a challenging environment in 2025, characterized by supply-demand imbalance, low prices, and expanding losses, leading to a significant restructuring of the industry and a dual bottoming of both the industry cycle and valuations [1] Supply and Demand Dynamics - The overall supply of pigs remains high, exacerbating market supply-demand conflicts, with a reported output of 530 million pigs in the first three quarters of 2025, a slight increase of 1.85% year-on-year [2] - As of the end of Q3 2025, the national pig inventory reached 43.68 million heads, an increase of 2.3% year-on-year, indicating persistent supply pressure [2] - The breeding sow inventory remains above reasonable levels, with 40.35 million sows reported, exceeding the reasonable holding level by 3.5% [2] Price Trends and Profitability - Pig prices have been on a downward trend since Q3 2024, with prices dropping from 15-16 RMB/kg at the beginning of 2025 to around 11-12 RMB/kg by Q4 2025 [2] - The industry has entered a loss phase, with average losses per head reaching 122 RMB by November 2025, as the price level has fallen below production costs [3] Capacity Reduction and Market Forces - The industry is expected to see an acceleration in capacity reduction due to both policy guidance and market forces, with significant policy signals released in July and September 2025 aimed at controlling production capacity [4] - Historical data suggests that when both piglet and fat pig prices fall into loss, the reduction of breeding sows will accelerate, which is currently the case [5] Cost Control and Industry Concentration - Cost control has become crucial for survival in the industry, with significant cost differentiation observed between leading companies and smaller firms, where leading companies have reduced costs to 11.3 RMB/kg compared to over 14 RMB/kg for some smaller enterprises [6] - The concentration of the industry is increasing, with the top 20 pig farming companies accounting for 27.63% of output in 2024, up 3.04 percentage points from 2023 [6] Future Outlook - The first half of 2026 is expected to remain under pressure, with continued low prices anticipated, but a potential turning point may occur in the second half of 2026 as supply-demand dynamics improve [7] - The current phase of capacity reduction, driven by both policy and market conditions, is likely to reshape the competitive landscape, benefiting leading companies with cost advantages [7][8]

Core Viewpoint - The swine farming industry has rapidly scaled up over the past decade, with Muyuan Foods (002714) becoming the world's largest swine farming group due to its strong competitive advantages and focused development strategy. Despite a prolonged price downturn caused by ample supply, the elimination of outdated capacity is expected to accelerate, further highlighting Muyuan's cost advantages [1]. Group 1: Cost Advantages - Muyuan Foods demonstrated strong operational resilience in its Q3 2025 report, with total swine sales reaching 57.323 million heads, a year-on-year increase of 27%. The company's complete breeding cost has continued to decline, reaching 11.6 yuan/kg in September 2025, down 1.5 yuan/kg from January. This cost reduction is attributed to improved production performance and decreased expenses [2]. - The slaughter volume for Muyuan Foods from January to September 2025 was 19.16 million heads, a significant year-on-year increase of 140%, with a capacity utilization rate of 88%. The company's slaughter business achieved profitability in Q3 due to continuous improvements in capacity utilization, product structure optimization, and enhanced service capabilities [2]. Group 2: Profitability Amid Market Challenges - Despite the national average price of swine dropping to approximately 11.5 yuan/kg, leading many small and medium-sized farmers into losses, Muyuan Foods achieved an average profit of 234 yuan per head, with breeding business profits exceeding 4.8 billion yuan. This "reverse market profit" is driven by technological advancements and meticulous management practices [3]. - Key production metrics for Muyuan Foods include a September survival rate of 87% for swine, a weaning-to-market survival rate of 93%, an average of 29 weaned piglets per sow per year, a daily weight gain of 880 grams for fattening pigs, and a feed-to-meat ratio of 2.64, all of which are industry-leading figures [3]. Group 3: International Expansion - Muyuan Foods has updated its Hong Kong listing application, aiming for a dual listing ("A+H") to accelerate its internationalization process. The company seeks to leverage Hong Kong's status as a global financial center to broaden financing channels, enhance international visibility, and attract overseas talent [4]. - The company has previously focused on technology exports rather than establishing its own farms, providing comprehensive solutions and technical services for farm design, construction, biosecurity, and environmental protection. In September 2025, Muyuan established a wholly-owned subsidiary in Vietnam and partnered with BAF Vietnam Agricultural Joint Stock Company to invest 3.2 billion yuan in a high-tech breeding project, which is expected to produce 1.6 million quality pigs annually [4]. - Analysts from Changjiang Securities noted that Muyuan Foods has developed the capability to compete with leading global farming enterprises, possessing a globally competitive cost structure when excluding feed raw material factors. The company is expected to expand its breeding operations internationally, leveraging its significant cost advantages in a more complex domestic farming environment [4].

Economic News - The People's Bank of China emphasizes the continuation of a moderately loose monetary policy to promote stable economic growth and reasonable price recovery [2] - The State Administration for Market Regulation issues a plan for the special governance of the quality and safety of industrial products sold online from 2025 to 2027 [2] - In November, China's total electricity consumption reached 835.6 billion kWh, a year-on-year increase of 6.2%, with high-tech and equipment manufacturing industries seeing a 6.7% increase [2] - The Ministry of Commerce announces increased policy support for foreign trade innovation and development [2] - The Chinese Foreign Ministry firmly opposes the U.S. plans to impose tariffs on China's semiconductor industry starting in 2027 [2] - Beijing's housing authorities relax home purchase conditions for non-local families and support housing needs for families with multiple children [2] Company News - Springlight Technology receives OEM/ODM orders for "W1" and "M1" robot products from Lexiang Technology, amounting to 43.2628 million yuan [3] - Wankai New Materials' subsidiary, Qing Magnesium Smart Plastic, signs a procurement contract with Lingxin Qiaoshou for lightweight components and assembly services, totaling 10 million yuan [3] - Nanshan Aluminum establishes a wholly-owned subsidiary in Hainan with an investment of 5 million yuan to expand high-end aluminum product development and trade [3] - Sunshine Nuohuo signs a technology development contract with Zhejiang Xinghao, with a total payment of 500 million yuan, including an 8% sales share [5] - Jiaheng Home Products' controlling shareholder is planning a change in control, leading to a temporary suspension of trading [5] Industry Research Agriculture and Animal Husbandry - The Ministry of Commerce announces anti-dumping duties on EU pork imports, effective from December 17, 2025, with rates ranging from 4.9% to 19.8% [6] - EU pork imports account for 51% of China's total pork imports, but only 2.03% of total consumption, indicating a limited impact on overall supply [7] - The anti-dumping duties are expected to increase the cost of EU pork imports, leading to a decrease in import volumes and a diversification of import sources [7] - Despite the anti-dumping measures, domestic supply and demand dynamics will continue to influence pork prices, with an oversupply expected to persist [8] - The report recommends focusing on leading companies in the pig farming industry, such as Muyuan Foods, as the market dynamics improve [8] Food and Beverage - The Chinese Ministry of Commerce initiates temporary anti-subsidy measures on EU dairy products, with preliminary subsidy rates between 28.6% and 42.7% [10][11] - The affected dairy products include cream and cheese, which have significantly impacted domestic producers' profitability [12] - The average price of fresh milk in China remains low at 3.03 yuan/kg, putting pressure on dairy companies [13] - The anti-subsidy measures are expected to create market opportunities for domestic dairy processing companies, benefiting firms like Lihai and Miao Ke Landuo [13]