Over the past 30 years, China's dairy industry has achieved brilliant accomplishments, successfully solving the problem of 'difficulty in drinking milk.' However, with economic development and continuous improvement in living standards, the industry now faces transformation, upgrading, and adjustment. The key issue has shifted from 'difficulty in drinking milk' to 'drinking good milk.'
At the same time, as consumer demands become more refined and personalized, competition among dairy companies has entered a phase of comprehensive strength based on source construction and product innovation. In this market environment, Huishan Dairy adheres to its corporate philosophy of 'building China's most trusted dairy brand,' dedicating itself to exploring a full industry chain development model for China's dairy industry, addressing the core issue of dairy safety from the source. After years of strategic layout, Huishan has built one of the most complete full industry chains in China's dairy industry.
As consumption habits transition from ambient milk to pasteurized fresh milk in the fresh era, how does Huishan leverage its full industry chain advantage amid dairy consumption upgrades?
Perfecting the Full Industry Chain Construction Leading Dairy Enterprises in Transformation and Upgrading
With the deepening development of China's dairy industry, the industry has gradually realized that controlling high-quality milk sources is fundamental to staying at the forefront and providing quality dairy products to the nation. Consequently, major domestic dairy companies have increased investment in large-scale milk sources. Huishan, however, began building from the source over a decade ago, constructing one of the most complete full industry chains in China's dairy industry, making it a leader in the transformation and upgrading of China's dairy sector.
The full industry chain strategy is Huishan's core development strategy. As early as 2003, Huishan initiated the construction of a full industry chain centered on milk sources. Over the years, Huishan has invested 20 billion yuan in Shenyang, Jinzhou, Fuxin, Liaoyang, Fushun, Tieling, and Yancheng in Jiangsu, building clusters for breeding fine dairy cows and dairy processing. After years of layout, the company has gradually formed a full industry chain development model integrating pasture planting, concentrate feed processing, fine dairy cow breeding, full-category dairy processing, dairy research and development, and quality control, becoming an innovator in the full industry chain development model in the global dairy industry.
Innovation Drives Industry Development Huishan Pioneers the 'Dairy Capital' Model
At the recent Third Shenyang Fresh Milk Festival, Huishan Group Chairman Yang Kai unveiled the pioneering 'Dairy Capital' development model to guests and media. According to Yang Kai, the 'Dairy Capital' model is: 'Under the premise of achieving an integrated full industry chain of planting, breeding, and processing, Huishan relies on urban clusters and modern transportation and logistics, laying out factories with cities as the core, and pastures with factories as the core. Within a reasonable transportation radius for pasteurized fresh milk, it achieves rapid delivery of high-quality fresh dairy products, aligning with the major trend of dairy consumption upgrades in China, allowing more consumers to enjoy fresh, safe, and high-quality milk products.'
360-Degree Full Industry Chain Fresh Closed Loop Huishan Innovates 'O+O' to Continuously Lead in Freshness
Pasteurized milk is valued for its freshness, and its production and processing require high-quality raw milk. 'Good milk is proven by numbers' is a product philosophy Huishan has always believed in. After years of research and exploration, Huishan has developed a set of internal control standards for raw milk across the full industry chain.
According to Huishan Dairy Vice President Yin Dongli, after 65 years of development and persistence, Huishan has formed a full industry chain development model integrating pasture, breeding, processing, production, and transportation. At the same time, Huishan adheres to strict internal control standards for raw milk. These standards stipulate that the total bacterial count in raw milk used for pasteurized milk production must be below 100,000 per milliliter, somatic cell count below 300,000 per milliliter, and protein content averaging 3.2%. 'Good milk is proven by numbers.' Huishan's adherence to the full industry chain model has resulted in raw milk quality indicators that are superior to national standards and even ahead of those in developed dairy countries.
High-quality raw milk as a guarantee has brought Huishan broader product innovation thinking. In response to the 'supply-side reform' requirements, Huishan actively responds to the upgrading of consumer demands, launching a series of fresh, high-quality, and distinctive personalized new products: Dr. Fresh high-quality fresh milk, with comprehensive quality standard upgrades; Dr. Fresh 'Heartfelt Organic' fresh milk, exchanging sincerity for consumer confidence; 'Fruit Fragrance and Sky Fragrance' yogurt, adapting to the trend of yogurt as a snack and leisure food, providing young consumers with diverse and scenario-based consumption experiences; and 'Zan Milk,' made from precious colostrum, leading the upgrade of children's milk consumption, supporting children's growth with natural nutrition.
While upgrading products, providing consumers with a 'better, faster, and fresher' consumption experience is key to the rapid development of pasteurized fresh milk. At the Fresh Milk Festival, Huishan Dairy Vice President Yin Dongli unveiled the mystery of Huishan's 'O+O Community Fresh Direct Delivery Platform.' It is reported that as a new upgraded version of the 'O2O model,' this platform is centered on a 'direct distribution + cooperation' delivery model. Based on Huishan's own delivery system, it integrates cold chain resources of community convenience stores to create a mobile-terminal-location-based 'O+O Community Fresh Direct Delivery Platform.' In first- and second-tier markets, it achieves operational upgrades from B2C to C2F through direct distribution. In third- and fourth-tier markets, it breaks through the constraints of cold chain transportation radius through cooperation with community convenience stores, meeting daily fresh consumption demands. The development of the 'O+O Community Fresh Direct Delivery Platform' expands the coverage of Huishan's low-temperature cold chain, accelerates the delivery speed of fresh dairy products, and enhances the responsiveness to consumer demands. Through differentiated high-quality products and last-mile fresh delivery services, Huishan creates a true 360-degree full industry chain fresh closed loop.
'China Quality Milk Full Industry Chain Fresh Alliance' Optimizing Guarantees for Fresh Upgrades
Consumer confidence directly determines the future of the dairy industry. Actively responding to national calls and implementing the requirements of the 'Quality Milk Project,' Huishan relies on its complete full industry chain model and practical experience to take the lead in corporate responsibility. At the Third Fresh Milk Festival, Huishan initiated the 'China Quality Milk Full Industry Chain Fresh Alliance.' The alliance aims to work with excellent business partners and experts across the dairy full industry chain to jointly improve the quality of pasteurized milk in China, establish reasonable, standardized, and higher-level industry-wide safety standards, and continuously move toward the great vision of 'World-Class Milk Made in China.'
China's consumer market is gradually recovering, and the wave of dairy consumption upgrades will not reverse. In the long term, milk source construction and product innovation will remain the main driving forces for the development of Chinese dairy enterprises. As senior dairy analyst Song Liang said, 'China's dairy industry has entered the era of quality milk. The core of future dairy competition is not only driven by consumption upgrades but also by quality milk sources.' Huishan, which has seized the opportunity of dairy consumption upgrades and gained a first-mover advantage through its full industry chain model, is leading new industry trends. Its future development is worth anticipating.
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