Chinese Dairy Industry Research Articles

Design an ESG Rating System: A Case Study of the Chinese Dairy Industry

The Environmental, Social, and Governance (ESG) rating system has become a crucial framework for evaluating companies, but its lack of standardisation poses challenges. This study presents a case study of the Chinese dairy industry to design a standardised ESG rating system. The proposed system comprises four levelsaspect, theme, information, and indicatorswith quantitative and qualitative performance indicators assigned weights based on their significance. Publicly available data from Chinese dairy companies are analysed to calculate weighted ESG scores, allowing for clear and comparable ratings. The case study focuses on environmental impact, social responsibility, governance standards, and negative aspects, offering insights into the industry's commitment to sustainability. The designed ESG rating system aims to address the current lack of standardisation, providing a tool for fair comparisons and guiding companies toward improvement. The case study underscores the importance of ESG considerations in a sector with significant environmental and social implications, contributing to more informed and responsible decision-making.

The Efficiency of Horizonal Mergers: Evidence from Mengniu Dairy's Merger with Milkground

Contemporarily, the dairy industry is a compulsory industry that relevant to the daily life of human beings. In particular, the dairy industry is a signature industry for the modernization of Chinese agriculture. Local production in China's dairy industry holds a huge market potential. In this paper, the efficiency of the horizontal mergers is investigated of Chinese dairy industry. To be specific, the case of Mengniu Dairy's Merger with Milkground is selected. Mengniu Group is the leading company in China's dairy industry and Milkground is the number one brand of domestic cheese. In recent years, there have been more and more cases of horizontal mergers and acquisitions. The value of horizontal mergers and acquisitions to the development of a company lies in making up for the lack of asset allocation. This paper will analyze the effectiveness of Mengniu's horizontal merger with Milkground through three financial indicators. According to the analysis, the corresponding suggestions will be given accordingly. Overall, these results shed light on guiding further exploration of horizontal merger.

Construction and application of milk-feed price ratio model - based on data from large scale dairy farms in China

Despite rapid development, the Chinese dairy industry still faces problems such as the lack of pricing power for dairy farmers, high fluctuations in raw milk and feed prices, imbalances between supply and demand, and low farming motivation. As an indicator with important geographical characteristics, the milk-feed price ratio (MF) is a critical reference indicator for setting raw milk prices and measuring farm profitability. The main aim of this study is to construct an appropriate milk-feed ratio model for China using statistical data for 2018-2020, which provides references for other developing countries. A vector error correction model was used to illustrate the long-term covariance between raw milk prices and feed prices in China and to analyze the feed structure of large-scale Chinese farms. The study found that the price weights of corn, soybean meal, corn silage, and alfalfa were 27%, 17%, 30%, and 26%, respectively, which are significantly different from those of developed countries, and the parameters of the model for the MF in different production areas in China also varied significantly. The milk-feed ratio in China has remained above 1.89 in the last three years. Seasonal variations in raw milk prices lead to a U-shaped trend in the MF. In recent years the MF in China has changed from a low level to a medium level, showing an upward trend, with large-scale farms at a profitable level.
 Keywords: Application of MF; Granger causality test; MF model; Large scale farm

Measurement of Ammonia and Hydrogen Sulfide Emission from Three Typical Dairy Barns and Estimation of Total Ammonia Emission for the Chinese Dairy Industry.

There is an urgent need for accurate measurement for emissions of ammonia (NH3) and hydrogen sulfide (H2S) in dairy barns in order to obtain reliable emission inventories and to develop and evaluate abatement strategies. This experiment was performed on three dairy farms in central China during 14 consecutive days in the winter 2020. Concentrations of NH3 and H2S were measured every two hours. The samples were taken inside and outside of barns from 7 sites at two heights (at floor and 1.5 over the floor). The results show that the average NH3 concentration was 2.47 mg/m3 with a maximum of 4.62 mg/m3, while the average H2S concentration was 0.179 mg/m3 with a maximum of 0.246 mg/m3. Lactating cows produced significantly more NH3 (3.73 mg/m3 versus 2.34 mg/m3) and H2S (0.24 mg/m3 versus 0.14 mg/m3) than non-lactating cows. NH3 and H2S concentrations were higher at 0 m than at 1.5 m, especially during the day. In addition, the average daily emission rates per animal unit (AU = 500 kg weight) were 23.5 g and 0.21 g for NH3 and H2S, respectively. The emission rate for NH3 was then used to extrapolate the NH3 emission from the Chinese dairy production. Our estimation for 2016 was 0.45 Tg, and it could reach 1.35 Tg by 2050. These numbers reflected our first attempt to calculate emission inventories for the Chinese dairy industry. Our results also suggest that more concrete measures must be taken to reduce the uncertainties of NH3 emissions from dairy cow production in China.

Collective Reputation in Trade: Evidence from the Chinese Dairy Industry

Abstract The existence of collective reputation implies an important externality. Among firms trading internationally, quality shocks about one firm's products could affect the demand of other firms from the same origin country. We study such a reputation spillover in the context of a large-scale scandal that affected the Chinese dairy industry in 2008. Leveraging detailed firm-product level administrative data and official quality inspection reports, we document sizable reputation spillovers on uncontaminated firms. We further investigate potential mechanisms that could mediate the strength of collective reputation, including information accuracy, observability of the supply chain, and prior export experience.

Evidence from a Choice Experiment in Consumer Preference towards Infant Milk Formula (IMF) in the Context of Dairy Revitalization and COVID-19 Pandemic.

China is the largest global consumer of infant milk formula (IMF). Chinese consumer preferences towards IMF have evolved over time but have also been rocked in recent years by COVID-19 with major implications for the IMF industry, globally and within China. This study is the first to document parents’ preferences toward IMF since the outbreak. We used novel methods to do so, through an online choice experiment of 804 participants that included risk perceptions and socio-demographic variables. Our study finds that Chinese parents continue to prioritize quality and safety attributes of IMF represented by functional ingredients, organic labelling and traceability information. Notably, it also finds greatly increased confidence in Chinese domestically produced IMF and an underlying preference away from expensive products. This implies that the era of ‘go for foreign’ and ‘go for the most expensive’ in IMF purchasing may be coming to an end. The shift in sentiment is driven by the longer-term revitalization of the Chinese dairy industry, accelerated by COVID-19. Understanding these trends will be of major benefit to both Chinese producers and non-Chinese exporters of IMF.

Effect of Saccharomyces cerevisiae culture mitigates heat stress-related dame in dairy cows by multi-omics.

The effect of heat stress on ruminants is an important issue. In recent years, the growth of the Chinese dairy industry has rapidly increased, generating RMB 468,738 million revenue in 2021. A decreased milk yield is the most recognized impact of heat stress on dairy cows and results in significant economic loss to dairy producers. Heat stress also lowers immunity and antioxidant capacity and changes the bacterial composition and metabolites of the rumen. The purpose of this study was to investigate the effect of addition Saccharomyces cerevisiae culture on heat-stressed cows. The impact of S. cerevisiae culture on microbiota composition, functional profiles, and metabolomics was assessed in heat-stressed cows. A total of 45 Holstein cows in mid-lactation were selected and randomly divided into three groups (15 cows per group). Groups D-C, D-A, and D-B were fed with the basal diet, the basal diet + first S. cerevisiae culture 100 g/day, and the basal diet + second S. cerevisiae culture 30 g/day, respectively. The trial lasted 60 days. There was an increased abundance of the Phylum Firmicutes in the rumen of heat-stressed dairy cows fed with S. cerevisiae, of which four genera had significantly higher abundance, Ruminococcus_gauvreauii_group, Butyrivibrio_2, Moryella, and Ruminiclostridium_6. At the functional level, ten pathways differed significantly between the three groups (P < 0.05), with an increase in fatty acid biosynthesis, fatty acid metabolism, PPAR signaling pathway, ferroptosis, and biotin metabolism in the treatment groups. More differential metabolites were found in the D-C and D-A groups than in the D-C and D-B groups. These results indicate that S. cerevisiae cultures can influence the health status of heat-stressed cows by modulating rumen microbial composition, function, and metabolites, thereby improving rumen cellulolytic capacity. This study can provide or offer suggestions or recommendations for the development and utilization of feed additives.

Comparative Study on QMS at Pre-Production Stage in China and UK Baby Dairy Product Industries

This research examined the Chinese baby dairy industry between 2008 and 2019, focusing on the quality management system with comparison between the UK and Chinese baby dairy product (BDP) companies. This study was conducted with a selection of four Chinese and two UK companies as case studies where interviews were used to collect the primary data. Moreover, focus group with company’s managers and government officials and site visits were also carried out. The collected data were analysed through thematic analysis technique. This research has concluded that in the Chinese BDP industry many challenges are encountered, such as animal management, farmers’ orientation towards quality assurance and implementation of quality standards. It has been found that it is important to focus on the pre-production stage for the best quality in final products. The comparison with the UK BDP industry has shown that it is better able to manage its quality with involvement of the majority of supply chain actors through electronic information sharing and traceability system, which are lacking in Chinese industry. It is also concluded that Chinese government has started to adopt practices such as strong enforcement of legislation which are improving the quality issues. The present study has important theoretical and empirical contribution in the existing literature. It has developed a framework about pre-production phase which will become foundation of future studies. The comparison of Chinese and UK BDP is also a contribution as previous studies have not done so. It has provided guidelines to managers about implementation of Quality Management System (QMS) in BDP hence managers have become better able to manage the quality.

Consumers’ Responses to Corporate Normalised Misconduct During an Industry-Wide Crisis: An Investigation in the Chinese Dairy Industry

Industry-wide crises are rooted in institutional problems and can cause large-scale negative consequences. This study investigates consumer responses during industry-wide crises by considering micro-level psychological aspects of institutions – the processes in which individual consumers perceive, judge and respond to the affected industry as an institutional entity. Specifically, it examines how consumers’ perceptions of the normative and regulatory environments of the affected industry influence their purchase intentions through legitimacy judgement. A consumer survey ( n = 534) was conducted after an industry-wide crisis in the Chinese dairy market. The results show that a high degree of perceived normalised misconduct and insufficient governmental regulation propel consumers to form negative legitimacy judgements of institutions and decrease their purchase intentions. This study is one of the first to provide an integrative framework for understanding consumer psychological mechanisms during industry-wide crises. It contributes to integrating the perspectives of consumers’ micro-level psychological mechanisms with views from macro-institutional environments. The research provides implications for managing industry misconduct and industry-wide crises.

Does Australian oaten hay improve Chinese dairy cow performance?

With the steep growth of the global population, especially in developing countries, the pressure on the agricultural sector has been increasing. Since the Chinese dairy industry is undergoing rapid development, the demand for adequate high-quality forage is proportionately increasing. Australian oaten hay is regularly exported to China with distinct nutritional benefits, but studies concerning details of the nutritional composition and its influence on the performance of Chinese dairy cows are limited. The controversy related to the harvesting time of oaten hay is another less explored area but critically important factor affecting the nutritional value of forage. This research used a comparative research method to analyze the nutritional composition difference between Australian oaten hay and Chinese oaten hay and the nutrient and yield difference during different harvesting times. Three different forage replacement experiments were reviewed, which were conducted on dry and mid-lactating Chinese Holstein cows and weaned Chinese Holstein calves separately. The corresponding impacts of feeding Australian oaten hay on their production performances were investigated by regression analysis methods. The results of this project can provide a comprehensive understanding of nutritional composition and a systematic overview of the impact of Australian oaten hay on the production performance of Chinese dairy Holstein cows.

Pre-weaned dairy calf management practices, morbidity and mortality of bovine respiratory disease and diarrhea in China

Controlling disease, maintaining animal well-being, and sustaining production efficiency in Chinese dairy industry will depend on whether enough of China's dairy farmers can adopt proper calf management practices. Consequently, to provide insights into a number of beneficial management practices used by many Chinese dairy farmers, ninety-eight dairy farms, located in the country's three typical climate zones (severe cold zone, SCZ; cold zone, CZ; and hot-summer/cold-winter zone, HSCWZ) were surveyed. The various management practices employed and the morbidity and mortality rates caused by bovine respiratory disease and diarrhea were recorded at each investigated farm. About three quarters of the calves on these farms were housed indoors (either individually or in group pens). The proportion of the calves reared in separate pens (individual indoor or outdoor hutches) was highest (56.20%) at large-scale farms (> 500 cows), followed by 33.3% at medium-scale farms (50–500 cows). A majority of the investigated farms (≥ 68.04%) did not have a system for monitoring either temperature, relative humidity, or air quality. A medium depth (score 2) of bedding was most common at 42.11% of the farms. 87.76% of the farms relied on natural ventilation. 36.10% of the farms did not provide supplemental heating in the calf barn, and the heating methods most often used differed among the three climate zones. Manual milk feeders involving bottles or buckets were more common (83.67%) than automated milk feeders. The mean morbidity and mortality rates of pre-weaned calves infected with bovine respiratory disease were 11.73% (95% CI:10.2–13.23%) and 3.65% (95% CI: 2.85–4.45%), while those infected with diarrhea were 14.17% (95% CI: 12.46–15.88%) and 3.61% (95% CI: 2.97–4.25%). The rates were highest in the SCZ, in spring and winter, and among group-housed calves. These results should provide insights that could lead to better management practices improvements that will help to sustain not only China's dairy farms but also dairy farms operated in the similar climate zones around the world.

Does the Price Support Policy Drive a Balanced Distribution of Profits in the Chinese Dairy Supply Chain? Implications for Supplier and Consumer Psychology.

Evaluating the price policy of raw milk is of great significance to the sustainable development of an industry supply chain. In this context, our study used the multi-period difference-in-difference method to systematically examine the impact of the policy implementation on product price and profit distribution in the supply chain. The results showed the following: (1) the price of raw milk in the implementation area of the price support policy is 13.54% higher than that of the unimplemented area; (2) the effect of price increase in the western region (15.5%) is higher than that in the eastern region (13%), and the central region (10.73%); (3) furthermore, the purchase price guidance policy of raw milk drives price increase or price suppression in the links of the supply chain to promote a balanced distribution of profits among the participants in the chain. These conclusions all have good stability and have reference significance for further improving and adjusting the price support policy of raw milk to realize the sustainable development of the Chinese dairy industry. This will enhance the production confidence of Chinese raw milk producers and improve Chinese consumers’ expectations and consumer psychology regarding domestic dairy products.

Hepatic transcriptome perturbations in dairy cows fed different forage resources

BackgroundForage plays critical roles in milk performance of dairy. However, domestic high-quality forage such as alfalfa hay is far from being sufficient in China. Thus, more than 1 million tons of alfalfa hay were imported in China annually in recent years. At the same time, more than 10 million tons of corn stover are generated annually in China. Thus, taking full advantage of corn stover to meet the demand of forage and reduce dependence on imported alfalfa hay has been a strategic policy for the Chinese dairy industry. Changes in liver metabolism under different forage resources are not well known. Thus, the objective of the present study was to investigate the effect of different forage resources on liver metabolism using RNAseq and bioinformatics analyses.ResultsThe results of this study showed that the cows fed a diet with corn stover (CS) as the main forage had lower milk yield, DMI, milk protein content and yield, milk fat yield, and lactose yield than cows fed a mixed forage (MF) diet (P < 0.01). KEGG analysis for differently expressed genes (DEG) in liver (81 up-regulated and 423 down-DEG, Padj ≤0.05) showed that pathways associated with glycan biosynthesis and metabolism and amino acid metabolism was inhibited by the CS diet. In addition, results from DAVID and ClueGO indicated that biological processes related to cell-cell adhesion, multicellular organism growth, and amino acid and protein metabolism also were downregulated by feeding CS. Co-expression network analysis indicated that FAM210A, SLC26A6, FBXW5, EIF6, ZSCAN10, FPGS, and ARMCX2 played critical roles in the network. Bioinformatics analysis showed that genes within the co-expression network were enriched to “pyruvate metabolic process”, “complement activation, classical pathway”, and “retrograde transport, endosome to Golgi”.ConclusionsResults of the present study indicated that feeding a low-quality forage diet inhibits important biological functions of the liver at least in part due to a reduction in DMI. In addition, the results of the present study provide an insight into the metabolic response in the liver to different-quality forage resources. As such, the data can help develop favorable strategies to improve the utilization of corn stover in China.

Competitiveness Evaluation of Chinese Dairy Industry Based on Accelerated Genetic Algorithm Projection Pursuit Model

Scientific evaluation of the competitiveness of China’s dairy industry is of great significance to the development of regional dairy industry. In view of the fact that the existing evaluation model cannot solve the dynamic nonlinear optimization problem, this paper established a projection pursuit model based on accelerating genetic algorithm and carried on the comprehensive evaluation and dynamic analysis on the competitiveness of dairy industry in China’s 31 provinces and cities (not including Hong Kong, Macao, and Taiwan) from five dimensions, namely, basic factors of production, the industry demand conditions, the enterprise competitiveness and growth force, related and supporting industries, and the natural environmental elements. It was found that firstly, from the perspective of time, the development trend of China’s dairy industry basically shows a positive trend. With the improvement of national living standards, the competitiveness of the dairy industry is also constantly improved. Secondly, from the perspective of space, regional differences in the competitiveness of the dairy industry are significant. Inner Mongolia, Heilongjiang, Shandong, and Hebei are at the forefront of the development of the industry, while the development of the dairy industry in the rest of the region has a big gap with those areas. From the perspective of regional layout, the advantageous region of China’s dairy industry has been preliminarily formed, and the competitive advantage is mainly concentrated in the northern region. Accordingly, the countermeasures and suggestions to enhance the competitiveness of China’s dairy industry were put forward.

Characterization of the milk fat globule membrane proteome in colostrum and mature milk of Xinong Saanen goats

Xinong Saanen goat milk is a major source of milk in the Chinese dairy industry. Milk fat globule membrane (MFGM) proteomes of goat colostrum and mature milk were analyzed and compared using proteomic technology. A total of 543 and 585 proteins were identified in goat colostrum and mature milk, respectively. Functional category analyses revealed that most of the MFGM proteins in both colostrum and mature milk were related to phosphoprotein and acetylation. The biological process of translation, cellular component of extracellular exosome, and molecular function of poly(A) RNA binding were the main gene ontology annotations of both colostrum and mature milk. Pathways associated with disease and genetic information processing involved large number of proteins in colostrum and mature milk, and more metabolism-related pathways were observed in mature milk. Protein-protein interaction network analyses showed that ribosome was abundant in both colostrum and mature milk. Colostrum showed more functions associated with protein processing in the endoplasmic reticulum, whereas mature milk had more oxidative phosphorylation functions. The results could provide further understanding of the unique biological properties of MFGM proteins of goat colostrum and mature milk.

Proteomic analysis of whey proteins in the colostrum and mature milk of Xinong Saanen goats

Xinong Saanen goats are among the major dairy goats in China, and their milk is one of the major milk supplies for the Chinese dairy industry. To explore the whey proteome of Xinong Saanen goat milk, we analyzed the whey proteins of goat colostrum and mature milk using proteomic techniques. We identified a total of 314 and 524 proteins in goat colostrum and mature milk, respectively. Our data showed the first 3 functional categories of signal, disulfide bond, and secreted in both milk types. The most abundant Gene Ontology annotations in both milks were the biological process of positive regulation of extracellular regulated protein kinases (ERK)1 and ERK2 cascade; the cellular component of extracellular exosome; and the molecular function of calcium ion binding. Goat colostrum whey proteins showed more disease-related pathways, and mature milk showed more pathways associated with metabolism. Moreover, we observed several pathways involved in intestinal mucosal immunity only in colostrum. Protein-protein interaction network and module analysis revealed that complement and coagulation cascades and Staphylococcus aureus infection were significant in the whey proteins of both milks, and carbon metabolism was more common for mature milk than for colostrum. These findings could provide useful information for the use of goat milk whey proteins in the Chinese dairy industry.

Emissions of ammonia and hydrogen sulfide from typical dairy barns in central China and major factors influencing the emissions

There are few studies on the concentrations and emission characteristics of ammonia (NH3) and hydrogen sulfide (H2S) from Chinese dairy farms. The purpose of this study was to calculate the emission rates of NH3 and H2S during summer and to investigate influencing factors for NH3 and H2S emissions from typical dairy barns in central China. Eleven dairy barns with open walls and double-slope bell tower roofs from three dairy farms were studied. Five different locations in each barn were sampled both near the floor and at 1.5 m above the floor. Concentrations of NH3 and H2S were measured using the Nessler’s reagent spectrophotometry method and the methylene blue spectrophotometric method, respectively. NH3 concentrations varied between 0.58 and 4.76 mg/m3 with the average of 1.54 mg/m3, while H2S concentrations ranged from 0.024 to 0.151 mg/m3 with the average of 0.092 mg/m3. The concentrations of NH3 and H2S were higher during the day than at night, and were higher near the ground than at the height of 1.5 m, and were higher in the manure area than in other areas. NH3 and H2S concentrations in the barns were significantly correlated with nitrogen and sulfur contents in feed and manure (P < 0.05), and with temperature inside the barns (P < 0.05). Calculated emission rates of NH3 ranged from 13.8 to 41.3 g NH3/(AU·d), while calculated emission rates of H2S ranged from 0.15 to 0.46 g H2S/(AU·d). These results will serve as a starting point for a national inventory of NH3 and H2S for the Chinese dairy industry.

Factors affecting the adoption of on-farm milk safety measures in Northern China — An examination from the perspective of farm size and production type

The cow stock of smallholder farmers with less than 100 cows still accounted for nearly 50% of total cows in China. Since the milk scandal occurred in 2008, raw milk safety has become focus for the sound development of the Chinese dairy industry. Adoption of on-farm milk safety measures by smallholders is a key for ensuring milk safety, and these measures are largely voluntary in nature. The recent survey conducted in northern China reveals that an overall adoption rate of various milk safety measures by smallholders is close to 48% with wide variations across the dairy farmers. We employ the Poisson regression model to study the determinants of farmers' adoption of voluntary milk safety measures. Compared with backyard dairy farmers, dairy complex and scaled dairy farms adopted more milk safety measures. Moreover, the empirical result indicates that farmers' adoption of raw milk safety measures is positively affected by farm size. These findings suggest that the changing dairy production structure towards larger farms and away from backyard dairy farming prompts smallholder dairy farmers to adopt more raw milk safety measures. This lends some support to the role of recent policy initiatives towards larger farms and away from backyard dairy farming on increasing the farmers' milk safety practices and reducing on-farm incidence of milk safety.

Benchmarking the performance of dairy products in Chinese dairy industry

PurposeThe purpose of this paper is to present a review of the main factors that are important to consumers of dairy products and develop a new product performance index for evaluating and benchmarking the performance of dairy products. This helps dairy product companies understand their dairy products’ overall performance level, relative to other dairy products in the market.Design/methodology/approachA new product performance index is developed for evaluating and benchmarking the performance of dairy products with respect to multiple criteria. Seven important criteria are identified for evaluating and benchmarking the performance of dairy products. To deal with the subjective assessments of qualitative performance measures, linguistic terms approximated by fuzzy numbers are used. Based on the concept of the degree of dominance, a fuzzy multicriteria group decision-making approach is developed to obtain a product performance index for each dairy product.FindingsThe proposed multicriteria group decision-making approach is found to be useful and effective in evaluating and benchmarking the performance of dairy products. The approach is capable of adequately considering the presence of multiple decision makers, the multi-dimensional nature of the performance evaluation problem, and modeling the subjectiveness and imprecision of the performance evaluation process.Research limitations/implicationsThe outcome of the multicriteria group decision-making approach is dependent on the subjective inputs provided by the decision makers.Practical implicationsThis product performance index will provide useful insights for companies understand their strengths and weaknesses in terms of their products’ performance criteria, and identify relevant areas for continuous improvement. This product performance index is also applicable for dealing with the general multicriteria decision-making problems.Social implicationsThe proposed multicriteria group decision-making approach can be used as a decision-making tool for providing various decision makers in dairy product companies and general consumers with useful information regarding the performance of different dairy products.Originality/valueThis paper highlights the important factors for evaluating and benchmarking dairy products and develops a new product performance index for evaluating and benchmarking the performance of dairy products in China.

Determinants of the competitive advantage of dairy supply chains: Evidence from the Chinese dairy industry

In this study, we use an evidence-based approach to examine the factors that determine the competitive advantage of dairy supply chains using evidence from the Chinese dairy industry. We focus on the quality assurance of dairy products, which is considered one of the fundamental influential factors. We investigate interrelationships among the identified determinants, which include dairy production behavior, dairy cow culture model, government regulations, corporate social responsibility, and quality assurance, and examine how these determinants influence the competitive advantage of dairy supply chains. We employ the structural equation modeling approach in which grouped observable variables that represent the identified determinants are extrapolated from primary data collected through a questionnaire survey. Our key findings show that by mediating the effects of dairy production behavior and the dairy cow culture model, government regulation and corporate social responsibility significantly affect the quality assurance of dairy products. In turn, dairy production behavior and the dairy cow culture model significantly affect the competitive advantage of the dairy supply chain via the fully mediated effects of the quality assurance of dairy products. Specifically, the dairy cow culture model helps ensure the safety and quality of milk supply, allowing core dairy firms to control product quality throughout the dairy supply chain. Our empirical study shows that the identified determinants interact to assure the quality of dairy products and enhance the competitive advantage of the dairy supply chain in China.