Abstract: In the second quarter,domestic dairy consumption entered a relatively low season,with slow recovery and staged excess of supply and demand,which aggravated the decline of milk prices and fierce price wars at retail terminals,and small and medium-sized dairy enterprises faced more severe challenges. From the performance of listed dairy companies,the overall revenue growth has shown signs of weakness,with significant performance differentiation. Large enterprises still maintain stable growth,the growth rate has slowed down significantly. However,the revenue and profits of small and medium-sized dairy companies have declined comprehensively,but some dairy companies have achieved good growth by adhering to brand values and continuously promoting new products. The cheese category lacked new consumption scenarios,and under homogeneous competition, top brands have also experienced a decline in growth. The phenomenon of mergers and acquisitions in the dairy industry resumed,fully indicating that the industry has entered a new period of integration. Dairy enterprises frequently produced new products,from modified milk ingredients to yogurt,from milk drinks to infant formula,and these products were characterized by functionalization and scenario.

Key words: declining milk prices, price war, slowing growth rate, dairy mergers and acquisitions