Core Insights - Berkshire Hathaway reported a significant decline in net profit for Q2 2025, amounting to $12.37 billion, a 59.24% decrease year-on-year, primarily due to a $5 billion impairment loss on its investment in Kraft Heinz [2][5][8] - The investment in Kraft Heinz has been a notable failure for Berkshire, with the carrying value of the investment dropping to $8.4 billion as of June 30, 2025, reflecting a more than 60% decline from its peak value at the time of the merger in 2015 [8][6] Financial Performance - In Q2 2025, Berkshire's total revenues were $92.515 billion, a slight decrease from $93.653 billion in Q2 2024 [3] - The net earnings attributable to Berkshire shareholders were $12.37 billion, down from $30.348 billion in the same quarter of the previous year [3] Investment Details - Berkshire Hathaway's investment in Kraft Heinz has faced multiple impairments, with a previous $3 billion write-down in 2019 followed by the recent $5 billion impairment [2][4] - The board representative from Berkshire at Kraft Heinz resigned on May 19, 2025, limiting the company's access to timely financial information [5] Strategic Reflections - Warren Buffett has publicly reflected on the mistakes made in the Kraft Heinz investment, acknowledging over-optimism regarding the company's competitive position and challenges in cost control [9][11] - The investment serves as a cautionary tale that even low acquisition prices do not guarantee a good investment if the underlying company is poor [11]

Industry Overview - The demand for dairy products continues to decline, with liquid milk sales in China dropping by 7.5% year-on-year from January to May 2025, and offline sales decreasing by 9.7%, while online sales grew by 4.8% [1] - In April 2025, the overall sales of dairy products across all channels fell by 9.5% year-on-year [1] Government Response - The Ministry of Agriculture and Rural Affairs held a meeting on June 25, 2025, to discuss measures to support the dairy industry, emphasizing the need for continued implementation of relief policies and enhancing the industry's competitiveness [2] - The Minister highlighted the importance of extending the industrial chain, increasing added value, and stabilizing the confidence of production entities in the dairy sector [2][3] Policy Measures - The government plans to boost dairy consumption through public awareness campaigns about the health benefits of milk and to encourage compliance with new sterilized milk standards [2] - There is a focus on strengthening dairy processing capabilities and developing diversified deep-processing products to transition from simple processing to advanced processing [2][3] Market Sentiment - Various policies are aimed at restoring confidence in the dairy industry, indicating a collective effort to address the challenges faced by the sector [4]