Huatai Securities: Dairy Demand Resilience Stands Out Despite Weak 2026 Consumption

Huatai Securities said in a research note that amid generally weak consumption in 2026, demand resilience in dairy products continues to stand out, according to Jiemian News. The brokerage said the sector is moving from a phase where low milk prices drove upstream capacity cuts while downstream waited for demand recovery, toward a stage where fundamentals are being validated, with signals of tightening supply and stabilizing demand strengthening. Huatai recommended focusing on earnings visibility and selectively positioning in leading companies across the dairy supply chain with solid fundamentals and potential expectation gaps, and said it remains bullish on a combined upcycle in both the raw milk and beef cattle cycles.