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].

Core Viewpoint - The article emphasizes the urgent need for structural adjustment in China's dairy industry, highlighting the imbalance between surplus raw milk and insufficient protein nutrition awareness among the population. The proposals by Cold Youbin, Chairman of China Feihe, aim to promote high-quality protein intake and enhance deep processing in the dairy sector, which are crucial for both industry development and national health strategy [1][2]. Industry Challenges - The current structure of China's dairy industry is heavily skewed towards primary products, with liquid milk accounting for over 92.7% of production, while high-value products like cheese and butter represent less than 7.3%. This indicates a pressing need for upgrading the industry structure and extending the value chain [4][5]. - The dairy industry faces significant financial losses, with cumulative income losses in the dairy farming sector reaching 70 billion yuan from 2023 to 2025, and losses from fresh milk powder production amounting to 20 billion yuan [5]. Protein Supply and Demand - There is a critical gap in protein intake among the Chinese population, with 45% of adults consuming insufficient protein. This issue is exacerbated among the elderly, where protein deficiency can lead to severe health problems [18][20]. - The self-sufficiency rate of protein sources in China has declined from 96% in 2000 to 69% in 2021, indicating a growing reliance on imports, particularly for dairy proteins [19]. Strategic Recommendations - Cold Youbin suggests that the government should set a target for domestic production of key dairy ingredients, such as whey protein, to reach over 60% self-sufficiency during the 14th Five-Year Plan period. This would enhance the stability of the dairy supply chain [5][20]. - The article advocates for increased support for deep processing enterprises in the dairy sector through tax incentives, talent development, and regulatory support to foster innovation and industry upgrades [5][20]. Company Initiatives - China Feihe has established a comprehensive supply chain, owning 13 farms and 115,000 dairy cows, achieving 100% self-controlled milk sources. The company has also developed advanced processing technologies for dairy proteins, significantly reducing reliance on imports [7][8]. - The company has launched a new traceability system for its products, allowing consumers to track the freshness and quality of core ingredients, thereby enhancing transparency in the supply chain [10][12]. Future Outlook - The article concludes that the future of China's dairy industry lies in moving from simple scale expansion to focusing on high-value protein processing. China Feihe's efforts in this direction are seen as a model for the industry, contributing to national health and safety strategies [21].