Core Viewpoint - The new national standard for sterilized milk (GB 25190-2010) will be implemented on September 16, 2025, prohibiting the use of reconstituted milk and mandating the use of raw milk as the sole ingredient for sterilized milk production [1][3]. Group 1: New National Standard Implementation - The new standard aims to enhance the quality of sterilized milk by ensuring it is produced solely from raw milk, which is expected to increase demand for raw milk and benefit the dairy farming industry [1][5]. - The implementation of the new standard is seen as a significant step towards improving the quality competitiveness of domestic milk and meeting consumer demand for high-quality dairy products [1][4]. Group 2: Industry Impact - The prohibition of reconstituted milk is anticipated to positively influence the dairy industry by fostering a closer relationship between dairy farming and processing sectors, ultimately increasing farmers' incomes [5][6]. - The new standard is expected to stabilize the dairy farming sector by increasing the demand for raw milk, which will enhance consumer confidence and promote dairy consumption [6][10]. Group 3: Quality and Compliance - The new standard will require higher quality raw materials, as only raw milk can be used for sterilized milk production, reflecting a commitment to high-quality development in the dairy sector [4][5]. - The quality of raw milk in China is reportedly sufficient to support the new standard, with a 99.96% pass rate in raw milk inspections in 2024 [4]. Group 4: Market Dynamics - The new standard is not expected to significantly raise the prices of sterilized milk, as the current low prices of raw milk can support the production costs without additional financial burden on processing companies [6][10]. - The standard will also help reduce reliance on imported milk powder and improve the international reputation of Chinese dairy products, enhancing their competitiveness in global markets [10][11].

Core Insights - The article discusses the evolution of China's cheese industry policies from initial guidance to systematic promotion, highlighting significant milestones and government initiatives aimed at enhancing the dairy sector, particularly cheese production [1][3]. Policy Evolution - During the 12th Five-Year Plan, policies focused on overall quality improvement and structural adjustments in the dairy industry, with the 2013 State Council opinion encouraging diversification in dairy products but not specifically mentioning cheese [1]. - The 13th Five-Year Plan shifted towards high-value product development, with the 2018 Ministry of Agriculture and Rural Affairs document first advocating for the moderate development of cheese and other dry dairy products, supporting local product R&D and import substitution strategies [1]. - The 14th Five-Year Plan saw a significant policy boost, with the 2021 State Council explicitly including cheese as a key category for dairy revitalization, and the 2022 Ministry of Industry and Information Technology guidelines aiming to increase cheese production capacity to over 10% [1]. National Policy Summary - China has introduced multiple national policies focusing on high-quality development in the dairy sector, emphasizing dairy revitalization, quality safety, technological upgrades, and green transformation [3]. - The State Council and Ministry of Agriculture are leading efforts to scale up dairy source bases, enhance quality control across the supply chain, and revise national standards for dairy products [3]. - Financial support is being provided for farm renovations and technological upgrades in dairy enterprises, with a goal to enhance the competitiveness of domestic dairy products, including cheese [3]. Provincial Policy Overview - Following the national directives, various provinces have issued policies to strengthen local dairy product safety and promote cheese production, with regions like Inner Mongolia, Hebei, and Shanghai actively supporting cheese industry development [11][12]. - Specific measures include subsidies for new large-scale dairy farms, support for fresh milk processing, and initiatives to enhance local dairy product quality and safety [12][14]. Cheese Industry Development Goals - The "14th Five-Year Plan for Dairy Industry Competitiveness Enhancement" outlines key tasks for cheese, including promoting the development of pasteurized milk, low-temperature fermented milk, and cheese products tailored to Chinese consumer preferences [11]. - The plan aims to increase domestic cheese production efficiency and consumer awareness of dairy nutrition, fostering a diverse and localized consumption habit [11]. Conclusion - The comprehensive policy framework at both national and provincial levels indicates a strong commitment to advancing the cheese industry in China, with a focus on quality, safety, and technological innovation, positioning the sector for sustainable growth [3][11].

Core Viewpoint - The Chinese dairy industry is transitioning from rapid growth to high-quality development, facing challenges such as supply-demand imbalance and price fluctuations, while also showing significant potential for future growth in consumption and production efficiency [1][10][16]. Industry Overview - The dairy industry is recognized as a strategic sector for national health and agricultural integration, with strong government support for quality improvement and international competitiveness [1][3]. - China's per capita dairy consumption has increased from 7 kg in 2000 to approximately 42 kg currently, indicating a growing market [3][4]. Production and Supply Chain - The dairy production volume is projected to reach 40.79 million tons by 2024, recovering from previous setbacks due to consumer confidence issues [3][4]. - The number of dairy cows in Hebei province has increased from 1.06 million in 2019 to 1.45 million in 2024, with fresh milk production rising from 3.85 million tons to 5.6 million tons in the same period [3][4]. - The implementation of the Quality Milk Project has led to significant advancements in milk quality and production technology, with 97% of pasteurized milk produced in 2024 being classified as high-quality [4][5]. Challenges and Market Dynamics - The industry is currently experiencing a phase of oversupply, with raw milk prices dropping significantly, leading to financial strain on dairy farms [10][11]. - The average purchase price of fresh milk fell to 3.90 yuan per kg in 2023, a decrease of 8.2% from the previous year, with many farms facing losses [10][11]. Consumption Trends - Domestic dairy consumption is still below recommended nutritional standards, with significant potential for growth as consumer awareness and dietary habits evolve [17][18]. - The market share of domestic infant formula has risen to over 60%, with brands like Feihe capturing more than 20% of the national market [8][9]. Strategic Recommendations - To stimulate consumption, the industry should focus on addressing consumer education, product diversity, and pricing strategies to make dairy products more accessible [19][20]. - There is a need for policy support to stabilize production and enhance the integration of dairy farming and processing to improve overall industry resilience [12][27]. Future Outlook - The dairy industry is expected to continue evolving, with a focus on technological innovation, quality improvement, and market expansion, particularly in rural areas [16][30]. - The establishment of a more integrated supply chain and better risk-sharing mechanisms among stakeholders is crucial for sustainable growth [27][28].

Core Insights - Inner Mongolia is a crucial agricultural region in China, contributing one-third of the national milk production and playing a significant role in the country's livestock industry [1] - The central government's 2025 policy emphasizes the need to support the beef and dairy industries, aiming to stabilize production capacity and alleviate operational pressures on farmers [1] Group 1: Dairy Industry Support Measures - The Inner Mongolia Finance Department, in collaboration with the Agriculture and Animal Husbandry Department and the Financial Regulatory Bureau, has optimized the policy for dairy cow insurance by adding new coverage options, enhancing the insurance framework to meet diverse needs of dairy farmers [2] - The new insurance coverage options include additional tiers of 3000, 4000, 5000, and 12000 yuan, expanding choices for farmers and stabilizing their income expectations [2] Group 2: Price Risk Protection Initiatives - The municipalities of Hulunbuir and Xingan League are key dairy production areas, where a pilot program for fresh milk price index insurance has been implemented with financial support from local governments [3] - In 2025, the target for fresh milk insurance coverage in these areas is set at 119,300 tons, with a financial subsidy of 10.46 million yuan from the regional government, providing an estimated insurance risk coverage of 388 million yuan for dairy farmers [3] - The Finance Department plans to enhance the synergy between agricultural insurance policies and dairy revitalization efforts, aiming to strengthen the risk protection framework for this vital agricultural sector [3]

Core Viewpoint - The demand for pasteurized milk in China is declining due to macroeconomic slowdown and consumer confidence issues, with projected consumption dropping to 1.7818 million tons and market size to 35.889 billion yuan in 2024 [1][8]. Overview - Pasteurized milk, also known as pasteurized milk or fresh milk, is produced from raw cow (or sheep) milk through pasteurization, retaining its nutritional value and natural flavor, making it popular among consumers [2]. - It requires refrigeration at around 4°C and has a short shelf life of 2-7 days. It can be categorized into whole, low-fat, and skimmed pasteurized milk based on fat content, and pure or flavored based on added ingredients [2]. Industry Policies - A series of policies have been implemented to support the dairy industry in China, including the "14th Five-Year Plan" for enhancing dairy competitiveness and various initiatives aimed at rural revitalization and high-quality development of the dairy sector [4][5]. Industry Chain - The upstream of the pasteurized milk industry includes milk sources (dairy cattle and sheep farming), production equipment, and packaging materials, while the downstream encompasses sales channels such as supermarkets, convenience stores, and e-commerce platforms [6][7]. Competitive Landscape - The market concentration of the pasteurized milk industry in China has increased, with leading companies like Bright Dairy, Mengniu Dairy, and New Hope Dairy holding over 70% of the market share. Bright Dairy has the largest share at 18.5%, followed by Mengniu Dairy at 12.6% [10]. - Bright Dairy's revenue for the first half of 2024 reached 12.71 billion yuan, with liquid milk accounting for 61.16% of sales [12]. - Mengniu Dairy reported a revenue of 44.67 billion yuan in the first half of 2024, with a gross profit of 17.98 billion yuan and a gross margin of 40.26% [14]. Development Trends - The competition in the pasteurized milk market is expected to intensify, leading companies to focus on product differentiation. Brands will likely introduce unique products such as functional and organic pasteurized milk, along with innovative forms and flavors to cater to younger consumers [16].