The development of dairy industry urgently needs to build a closer community with a shared future.

Under a series of superimposed factors, such as poor consumption, lack of market confidence, increased inventory, and lower milk prices in the international market, although dairy farmers and dairy enterprises are a community in the industrial chain, they do not establish a close relationship of interests. as a result, the situation of more but less robbery continues to occur. Although the contradiction between supply and demand in the current market is prominent, there is still profound potential for the development of China's dairy industry in the long run. Dairy enterprises should strictly abide by the spirit of contract, be far-sighted, and earnestly establish a community with a shared future more closely with dairy farmers. to achieve win-win results in farming and processing.

It is reported that in the first half of the year, the loss area of China's dairy industry has exceeded 50%, and the financial statements of listed dairy enterprises are not good-looking, and the overall performance has declined. The market consumption is not smooth, the milk price is too low, and the international milk price is seriously upside down with the domestic milk price, and so on, which are the labor pains of revitalizing the developing national dairy industry.

In recent years, China's dairy industry has made great achievements and become the third largest dairy producer in the world. In 2015, China's output of fresh milk and dairy products reached 38.7 million tons and 27.82 million tons respectively, the national qualified rate of fresh milk and dairy products reached 99.3% and 99.5% respectively, and the per capita milk consumption reached 36 kg. The qualified rate of melamine sampling inspection has been maintained at 100% for seven consecutive years, and the indicators such as milk protein and milk fat on large-scale farms have reached the level of developed countries. There is a marked change in the mode of production in the dairy industry. The proportion of large-scale farming of dairy cows is more than 48%, and the per unit yield of Holstein cows has increased significantly. Holstein cows have an average per unit yield of 6 tons, of which more than 9 tons have reached 1.5 million cows. All large-scale farms have achieved mechanized milking; there are more than 15000 professional cooperative organizations for dairy farmers, and the level of scale, standardization, mechanization and organization of dairy farming has been significantly improved. The level of major dairy processing equipment and technology has approached or reached the world's advanced level, and the market share of the top 20 dairy enterprises has exceeded 50%. China has spent more than 30 years to complete the development of dairy industry in developed countries for more than a hundred years, and the achievements are not easy to come by.

In the great development of China's dairy industry, in addition to the weak consumer confidence, the ever-changing market has also deeply affected the dairy farmers at the production end, and there has been a lot of news about pouring milk and killing cows. In the past, when the market was not good, dairy enterprises refused to accept because of small scale, low degree of standardization, and poor quality. now the production level of dairy farmers has improved, and cows no longer eat straw, drink cold water, and sleep in sludge. instead, they have lived a good life of eating "king of pasture" alfalfa, drinking hot water and sleeping in bed. the feeding environment of dairy cows has been improved, and the quality and quality of milk has also improved, but dairy farmers still can not get rid of the weak position. Some ranchers said that when the market for raw milk was good, major dairy enterprises competed for milk sources, and large domestic dairy enterprises all wanted to sign milk supply agreements with them. Moreover, when signing the contract, the two sides did not set an upper limit, but only a lower limit. They wanted to produce as much milk as possible, and they even had to pay liquidated damages to dairy enterprises if they could not reach the lower limit, but there was no clear provision for the upper limit. Due to the signing of the contract for 10 years, pastures continue to increase investment and improve technical management, the natural growth of fresh milk has increased rapidly in recent years. But unexpectedly, when the dairy market is not good, dairy enterprises directly limit the quantity, resulting in the increase of fresh milk can not be dealt with in time, bringing great losses to dairy farmers.

Dairy enterprises are also suffering. Although they continue to increase marketing efforts and improve product quality construction, they still can not stop the trend of consumers buying foreign dairy products. A popular phrase nowadays is that the supply side is out of line with the consumer side, especially in the dairy industry chain. Although a contract has been signed between production and processing, and even when the milk supply is tight, it is clearly stipulated in the contract that the farm should not deliver less than how many tons of milk per day, but the deep contradiction in the development of the dairy industry has not been resolved. Dairy enterprises and dairy farmers are two business subjects who jointly pursue the maximization of interests, under a series of superimposed factors, such as poor consumption, lack of market confidence, increased inventory, lower milk prices in the international market, although dairy farmers and dairy enterprises are a community in the industrial chain, the relationship of interests established is not close, resulting in the continuous occurrence of more but less robbery. Although at present, the proportion of milk sources of self-construction and equity participation of dairy enterprises has exceeded 20%, there are modern animal husbandry's production mode of "integration of planting, breeding and processing" and "finishing in 2 hours from milking to processing". There is the benefit connection mechanism of win-win cooperation between dairy farmers and dairy enterprises created by Zhongding Animal Husbandry, forming the largest innovative dairy farmers association in the country, and building a model of advancing and retreating together with dairy farmers. However, in the production part of the dairy industry chain with the greatest cost and risk, dairy farmers still buy high-priced dairy cows, the direct input and feeding of milk are invested by dairy farmers, and dairy enterprises do light assets links such as processing, brand, channel and sale. although there is a paper contract constraint in production and processing, in the severe market environment, the thin contract can not solve the plight of dairy farmers and dairy enterprises.

The development of dairy industry is related to the happy life of Chinese people, the increase of farmers' employment and income, and the guarantee of national important agricultural products and food supply, which is of great significance. The just-held Summit of China's Top 20 Dairy Industry (D20) and Dairy Revitalization Conference issued a declaration: to stabilize the source of milk as its own responsibility, to build a fair and reasonable benefit distribution mechanism. With the majority of dairy farmers to form a community with a shared future, sharing pressure, sharing results, close cooperation and common development. It is of great significance to the current development of China's dairy industry which is in the critical period of transformation and upgrading.

It should be noted that although the contradiction between supply and demand in the current market is prominent, the development of China's dairy industry still has profound potential in the long run, and the current saturation of dairy products is temporary at best. Last year, the growth of national liquid milk sales was still fast among all kinds of staple foods. With the good news such as population growth, the improvement of people's living standards and the liberalization of the "two-child" policy, dairy consumption is expected to maintain a steady growth trend for a long time, and China's dairy industry is still in an important stage of great potential. At present, in the period of structural adjustment and transformation of the dairy industry, under the condition that dairy farmers produce in strict accordance with the contract, dairy enterprises should strictly abide by the spirit of contract and take a long view. When market consumption is sluggish, they should bear the responsibility of revitalizing the national dairy industry. When the price of milk powder abroad is low, we should not limit the acceptance of fresh milk from domestic farms. We should earnestly fulfill our commitments, establish a community with a shared future with dairy farmers, and lead the transformation and upgrading of the industry. To vigorously promote the transformation from traditional dairy industry to modern dairy industry, only when dairy farmers and dairy enterprises share the responsibility, can we achieve the goal of a win-win ecosystem for farming and processing.