Cattle Prices Surge Above 22 Yuan/kg in May, China's Livestock Leaders Expand Beef Operations

According to CITIC Securities, raw milk prices have remained elevated since April, easing supply-demand tensions, while culled cow prices surged above 22 yuan per kilogram since May. Major livestock companies are expanding beef cattle operations. With domestic herd culling continuing and import quotas in effect, beef cattle supply is expected to face downward pressure in 2026, indicating potential upside for live cattle prices in the current cycle.

CITIC Securities recommends investing in leading livestock producers with integrated operations and high raw milk self-sufficiency, as well as dairy processors positioned to benefit from improved milk supply conditions.