YOURAN DAIRY (09858) rose over 4%. As of the time of writing, the stock was up 4.56%, trading at HK$5.27, with a turnover of HK$62.7507 million. On the news front, the Ministry of Commerce recently announced the results of its import beef ruling, deciding to implement "country-specific quotas and an additional 55% tariff on volumes exceeding the quota." The quota for 2026 is set at 2.688 million tons.

CITIC Securities estimates that the cumulative decline in the cattle inventory for the beef industry in 2024 and the first half of 2025 will exceed 10%, impacting beef production in the second half of 2025 through 2026. Coupled with a decrease in import volumes, tight supply is expected to drive sustained price increases for beef and live cattle.

Regarding the raw milk cycle, the ongoing reduction in dairy cow inventory, combined with a boost in demand from deep processing of dairy products and the recent EU anti-subsidy ruling, supports a positive outlook for subsequent milk price recovery. The beef and raw milk cycles are anticipated to resonate, providing a foundation for improved profitability among husbandry companies.

Public information indicates that YOURAN DAIRY is the largest raw milk supplier in China, currently operating 100 pastures and rearing approximately 620,000 dairy cows. Its raw milk production in 2024 was about 3.74 million tons, accounting for 12.1% of the national total.

The company has a leading position in the upstream sector of the industry and is the largest provider of ruminant feed in China. Its subsidiary, Saikexing, is the country's largest dairy cattle breeding enterprise. Furthermore, backed by its major shareholder, Inner Mongolia Yili Industrial Group, Yili contributed 95% of the company's raw milk revenue in 2024, and the company accounted for approximately 40% of Yili's total raw milk procurement.