Late Oct-Early Nov 2025 China’s Dairy Industry: Corporate Dynamics – Capacity, Innovation & Cluster Development

Summary:

Late Oct-Early Nov 2025, China’s dairy industry saw active corporate dynamics: key processing/farming projects advanced, capacity expansions launched (e.g., Panda Dairy, Terun), Mengniu unveiled Hi188 probiotic, and giants built northwest camel milk clusters.

Progress on two dairy processing projects

In early November 2025, two dairy processing projects made key progress. 
 

On November 3, Inner Mongolia Zhongli Dairy Co., Ltd. publicly disclosed the environmental protection acceptance monitoring report for its new dairy processing project (milk powder production line) in Dengkou Industrial Park, Bayannur City, Inner Mongolia. Covering 32,076.07 m² with a total investment of USD11.29 million (RMB80 million, including USD0.34 million/RMB2.39 million for environmental protection), the project started in April 2024, completed in June 2025, and achieved an actual constructed capacity of 10,000 t/a milk powder (yogurt, fresh milk and other lines not included in this acceptance). 
 

On November 5, Taixing Dongsheng Bio-Technology Co., Ltd.’s 4,000 t/a dairy processing renovation and expansion project obtained EI report acceptance; located at No. 91–92 Junmin Road, Huangqiao Town, Taixing City, Jiangsu, it involves a total investment of USD3.03 million (RMB21.5 million, including USD70,554.70/RMB500,000 for environmental protection) and two phases (each with two 1,000 t/a lines), scheduled for December 2025–February 2026 (Phase I) and December 2026–February 2027 (Phase II).

Terun Dairy unveils 200,000 t/a smart plant and "Little Blue Cow" IP to break Q3 slump

In late October 2025, Xinjiang Terun Dairy Co., Ltd. (Terun Dairy) reported Q3 2025 financial results: Q3 operating revenue was USD95.69 million (RMB678.15 million, YoY -4.84%) with net profit of USD1.59 million (RMB11.24 million, YoY -77.60%); Jan-Sep cumulative revenue reached USD292.61 million (RMB2.07 billion, YoY -3.81%) and net profit was -USD1.50 million (RMB10.61 million, YoY -147.66%), affected by herd optimisation (8% low-yield cow culling, one-off loss of USD27.94 million/RMB198.03 million), intensified competition and policy-driven credit impairment. 

On October 28, the company commissioned a 200,000 t/a intelligent dairy processing plant (total investment USD120.28 million/RMB852.42 million, site area 256,300 m²) with capacity of 168,000 t/a UHT milk, 15,840 t/a pasteurised milk and 16,200 t/a yoghurt (ground-breaking May 22, 2023; trial start August 30, 2025) and unveiled the "Little Blue Cow" brand IP. 

Jan-Sep operating cash flow was USD64.05 million (RMB453.90 million, YoY +4.37%) and farming segment revenue surged 80.08% YoY.

Two dairy farming projects completion acceptance published

In late October 2025, two dairy farming projects announced completion acceptance. 

On October 31, Ningxia Saikexing Breeding Co., Ltd. released the environmental protection acceptance report for its "2+1" 10,000-head smart ranch renovation and expansion project (Yueya Lake Township, Yinchuan, Ningxia), covering 230,011.5 m² with a total investment of USD15.52 million (RMB110 million, including USD2.95 million/RMB20.94 million for environmental protection). 

Launched on March 1, 2024, and completed on October 1, 2024, it integrated existing ranches into a 10,000-head complex (Phase I: 4,200 head, Phase II: 3,000 head, this project: 2,800 heifers) via constructing four standardized cow sheds and relocating heifers. 

On October 28, Nanping Lusheng Pastoral Industry Co., Ltd. disclosed the acceptance report for its dairy farm upgrading project (Xuyang Village, Nanping, Fujian), covering 51,133.65 m² with an investment of USD1.55 million (RMB11 million, including USD0.14 million/RMB1 million for environmental protection). Started in June 2022 and completed in August 2025, it built 18 cow sheds, with actual annual stocking of 1,219 dairy cows (4,500 t/a fresh milk) versus the planned 1,600.

Two dairy giants build camel milk cluster in Northwest China

In early November 2025, two dairy giants invested a total of USD98.78 million (RMB700 million) in camel milk projects in Northwest China. 

On November 6, Shanghai Youchun Animal Husbandry Technology Co., Ltd. partnered with Jinchang City Government for a USD28.22 million (RMB200 million) "Ten Thousand Camels Ecological Ranch Project", to be advanced in three phases (ultimately 10,000 camels, 8,000 base female camels), with its 200,000 t/a dairy processing project in Jichuan District expected to start production by end-December. 

On November 11, Yili Nala Dairy Group signed an agreement with Alxa Right Banner Government, investing USD70.55 million (RMB500 million) in three-phase camel milk projects to build a standardized camel milk powder workshop, sign long-term purchase agreements with over 2,000 herders, and achieve an annual output of 5,400 t/a high-quality camel milk powder.

Panda Dairy reallocates funds to double Hainan plant capacity

On November 18, 2025, Panda Dairy Corporation announced a strategic fund reallocation, diverting the original USD2.82 million (RMB20 million) earmarked for a Zhejiang Cangnan condensed-dairy project and adding another USD2.82 million (RMB20 million) to expand its Hainan Ding'an food-ingredients project—doubling capacity from 5,000 t/a to 10,000 t/a (focusing on condensed milk, condiment sauce, coconut cream) with a forecast of USD17.64 million (RMB125 million) annual revenue and USD1.41 million (RMB10 million) net profit. 

Its Q3 2025 operating revenue was USD32.90 million (RMB233.15 million, YoY +11.92%) and net profit USD4.28 million (RMB30.36 million, YoY -1.08%); Jan-Sep cumulative revenue USD82.65 million (RMB585.70 million, YoY +3.00%) and net profit USD10.12 million (RMB71.71 million, YoY -8.17%). 

The company controls costs via raw material reserves, expands products (base milk, mascarpone, etc.) and adopts an omni-channel strategy.

Mengniu–ECNU child growth probiotic Hi188 opens new nutritional health route

In late October 2025, Inner Mongolia Mengniu Dairy (Group) Co., Ltd. and East China Normal University (ECNU) jointly announced the successful isolation of the growth-promoting probiotic strain Lactiplantibacillus plantarum Hi188, with findings published in iMetaOmics and a national invention patent granted. 

Hi188 boosts 5-hydroxyindole-acetic acid (5-HIAA) production and insulin-like growth factor-1 (IGF-1) levels to drive children’s somatic growth, addressing the issue that 57% of surveyed youngsters failed to reach genetically predicted stature (per 2024 Children's Height Status Report). 

Mengniu has completed fermentation and scale-up production for Hi188, launching the "Yimibaba" children’s probiotic range, and has built a full-chain innovation loop, complementing its existing probiotic R&D matrix including the Lc19 strain.

Data Source from CCM-Cnchemicals

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