Core Viewpoint - The revised national standard for sterilized milk, effective from September 16, 2025, prohibits the use of reconstituted milk, mandating that only fresh milk can be used as raw material, which is expected to enhance the quality of dairy products and support the domestic dairy industry [1][5][11]. Group 1: Regulatory Changes - The new standard clarifies that products made with reconstituted milk cannot be labeled as "pure cow (sheep) milk" and will be classified as processed milk [1][2]. - The prohibition of reconstituted milk in sterilized milk production aims to increase the demand for fresh milk, benefiting dairy farmers and improving their income [1][5][11]. Group 2: Nutritional and Quality Aspects - Fresh milk contains more active nutrients compared to reconstituted milk, leading to better taste and quality in products made from fresh milk [1][5]. - The nutritional value of reconstituted milk is inferior to that of fresh milk, as it undergoes significant nutrient loss during processing [2][3]. Group 3: Industry Impact - The ban on reconstituted milk is expected to alleviate the current oversupply of fresh milk in the market, as the demand for fresh milk will increase due to the new regulations [6][11]. - The domestic dairy industry has seen significant improvements in the quality and safety of fresh milk, with a 99.9% pass rate in inspections and a rise in production standards [4][11]. Group 4: Market Dynamics - The overall demand for fresh milk is around 50-55 million tons, while actual consumption is about 45 million tons, indicating a supply surplus [6]. - In 2024, the total production of raw milk in China was 40.79 million tons, a 2.8% decrease year-on-year, marking the first decline since 2018 [7]. Group 5: Price Stability - Experts indicate that the price of fresh milk is unlikely to rise due to the current oversupply situation and the low prices of raw milk, which have been below production costs for many farmers [12][13][14]. - The average retail price of fresh milk has remained stable, with minimal fluctuations observed in 2025, despite concerns about potential price increases due to the new regulations [19][20][21].