Core Viewpoint - The new national standard for sterilized milk, effective from September 16, mandates that only raw milk can be used as the sole ingredient, prohibiting the use of reconstituted milk, thereby ensuring the purity and quality of the product [2][4]. Summary by Sections Changes in Standards - The revised standard explicitly requires that sterilized milk must be made solely from raw cow or goat milk, eliminating the use of reconstituted milk, which is produced by rehydrating milk powder [2][4]. - The new regulations enhance product transparency by requiring clear labeling of ingredient information on packaging, allowing consumers to understand the true nature of the products [4]. Impact on Prices - The introduction of the new standard is expected to have a limited impact on dairy product prices, as the current low prices of fresh milk are sufficient to support the production of sterilized milk without incurring additional costs [6]. Effects on Consumers and Industry - Consumers will benefit from higher quality and better-tasting sterilized milk, as products made from fresh milk retain more natural active ingredients, enhancing nutritional value and flavor [9]. - Dairy farmers are likely to see improved earnings due to increased demand for fresh milk, which will help alleviate industry losses caused by supply-demand imbalances [9]. - The new standard aligns with international practices, enhancing the competitiveness of domestic dairy products in the global market and improving the quality reputation of Chinese sterilized milk [9].

Core Viewpoint - From September 16, 2023, the production of sterilized milk in China will only be allowed to use raw milk as a raw material, prohibiting the use of reconstituted milk, which will be classified under blended milk management [1][6]. Group 1: Regulatory Changes - The new regulation prohibits the labeling of products made with reconstituted milk as "pure cow (sheep) milk" or "pure cow (sheep) milk" [1]. - The change aims to enhance the quality of milk products and align with international standards, as many countries already require sterilized milk to be made solely from raw milk [11]. Group 2: Market Impact - The new standard is expected to positively influence the market by increasing the demand for raw milk, thereby stabilizing the dairy farming sector and improving farmers' incomes [9]. - Industry experts believe that the implementation of the new standard will not significantly affect the prices of sterilized milk, as the current prices of raw milk remain low and many companies have already adapted to using raw milk [10]. Group 3: Consumer Awareness - Many consumers are unaware of the new regulation and the concept of reconstituted milk, often focusing more on brand rather than ingredient labels [5]. - The industry anticipates that the new regulation will help improve product quality and meet consumer demand for higher-quality dairy products [9].