Core Viewpoint - The implementation of the new national standard for sterilized milk marks a significant upgrade in China's dairy industry, transitioning from a reliance on reconstituted milk to a focus on fresh milk as the sole ingredient, thereby enhancing product quality and consumer trust [1][2][3]. Group 1: Regulatory Changes - The new national standard prohibits the use of reconstituted milk in sterilized milk, mandating that only fresh milk be used as the sole raw material [1][2]. - This regulatory change aims to improve transparency and consumer choice, reducing the confusion between "pure milk" and "reconstituted milk" [3][7]. Group 2: Market Dynamics - The new standard has led to simpler product labels, with a noticeable increase in products marketed as "100% fresh milk" [2]. - The demand for fresh milk is expected to rise, benefiting domestic dairy farming and increasing farmers' income [7][8]. Group 3: Industry Impact - The implementation of the new standard is seen as a test of the entire dairy supply chain's capability, particularly in sourcing high-quality fresh milk [7]. - Larger dairy companies with established supply chains are likely to thrive, while smaller companies may struggle due to their reliance on external sources [8]. Group 4: Quality and Production - China's fresh milk production capacity has significantly improved, with 40.794 million tons of milk produced in 2024 and a 100% pass rate in quality inspections [4][5]. - The new standard is expected to enhance the overall quality of dairy products, promoting higher standards in production processes and consumer satisfaction [6][7].

Core Insights - The new regulations on sterilized milk aim to standardize the market and protect consumer rights by requiring clear labeling of reconstituted milk products [1] - Reconstituted milk is not "nutritionally void" or "fake milk"; it undergoes a process that retains essential nutrients like protein and calcium, despite some loss of heat-sensitive vitamins [1] - The demand for higher quality and functional dairy products is rising, and reconstituted milk offers advantages such as longer shelf life and versatility in various dairy applications [2] Summary by Sections - **Regulatory Changes** - The new regulations enhance labeling requirements for reconstituted milk, ensuring consumers are informed [1] - **Nutritional Value** - Reconstituted milk is produced by concentrating and drying fresh milk, then rehydrating it, which maintains most core nutrients [1] - **Market Positioning** - Reconstituted milk is suitable for diverse applications beyond traditional dairy products, including baking and beverages, highlighting its adaptability [2] - **Future Outlook** - The new regulations are not the end for reconstituted milk; it will evolve to meet consumer demands and pursue a path of high-quality development [2]

Core Insights - Reconstituted milk is often misunderstood as inferior or not fresh, but it plays a crucial role in the efficient allocation of dairy resources and supply chain stability [1] - The production process of reconstituted milk involves high-temperature sterilization, low-temperature concentration, and spray drying, which addresses the geographical limitations of quality milk sources and the widespread distribution of consumer markets [1] - Reconstituted milk reduces costs and energy consumption associated with long-distance cold chain transportation, aligning with sustainable development goals [1] - While heat treatment may lead to some loss of heat-sensitive vitamins, the core nutritional values, such as high-quality protein and calcium, remain largely unaffected [1][2] Consumer Perspective - Consumers should make informed decisions based on their actual needs: fresh local milk is ideal for unique flavors and certain heat-sensitive nutrients, while clearly labeled reconstituted milk products offer safety, nutrition, and responsibility [3] - The existence of reconstituted milk highlights the modern food industry's pursuit of an optimal balance between safety, nutrition, convenience, and sustainability [3] - Moving beyond misconceptions about reconstituted milk is essential for consumers to become more informed and confident in their choices [3]

Core Points - The revised national standard for sterilized milk mandates that only raw milk can be used as the sole ingredient for producing sterilized milk, closing the door on reconstituted milk [1][2] - This change aims to ensure the purity and freshness of sterilized milk, aligning with international practices where most developed countries require sterilized milk to be made solely from raw milk [1] Group 1: Industry Impact - The revision of the sterilized milk standard is expected to enhance the quality of dairy products in China and promote high-quality development in the dairy industry [1][2] - The new standard will increase the demand for raw milk, fostering closer ties between dairy companies and farmers, which will help stabilize milk prices and improve farmers' incomes [2] - The average purchase price of raw milk in China has become comparable to the landed and taxed price of imported milk powder, indicating that using raw milk will not significantly impact production costs or retail prices [2] Group 2: Consumer Implications - After the implementation of the new standard, consumers will find it easier to identify pure milk products, as any product labeled "pure milk" must contain 100% raw milk [3] - Reconstituted milk is not entirely banned; it can still be used in the production of formulated and fermented dairy products, provided it is clearly labeled [3] - The update in standards reflects a significant leap in the quality of China's dairy industry, aiming to meet the growing demand for high-quality products among consumers [3]

Core Points - The revised national standard for sterilized milk mandates that only raw cow or goat milk can be used as the sole ingredient, effectively banning the use of reconstituted milk [1] - The revision aims to enhance the purity and freshness of sterilized milk, aligning with international practices where most developed countries require sterilized milk to be made solely from raw milk [1] - The change is expected to boost domestic demand for raw milk, strengthen the connection between dairy companies and farmers, and stabilize milk prices [2] Industry Impact - The revision of the sterilized milk standard is seen as a significant improvement in the quality of dairy products in China, promoting high-quality development in the dairy industry [1][2] - The average purchase price of raw milk in China has become comparable to the landed cost of imported milk powder, indicating that using raw milk will not significantly impact production costs or retail prices [2] - The new standard simplifies consumer choices, ensuring that products labeled as "pure milk" must contain 100% raw milk, while reconstituted milk can still be used in other dairy products with clear labeling [3] Consumer Implications - Consumers will benefit from clearer labeling and standards, making it easier to identify high-quality dairy products [3] - The updated standards reflect a broader trend towards improving food safety and quality in response to consumer demand for better products [3]

Core Viewpoint - The implementation of the revised national standard for sterilized milk mandates that only raw cow or goat milk can be used as the sole ingredient, effectively prohibiting the use of reconstituted milk [1][2]. Group 1: Industry Standards and Regulations - The revised standard aims to ensure the "purity" and "freshness" of sterilized milk by requiring that no other ingredients be added and that ingredient information is transparently labeled on packaging [1]. - This revision aligns with international practices, as most developed countries and international organizations require sterilized milk to be made solely from raw milk [1]. Group 2: Economic Impact - The shift to using only raw milk is not expected to significantly increase production costs, as the average purchase price of raw milk has become comparable to the landed and taxed price of imported milk powder [2]. - The new standard is anticipated to boost demand for raw milk, fostering closer ties between dairy companies and farmers, which will help stabilize milk prices and improve farmers' incomes [2]. Group 3: Consumer Implications - Post-implementation, consumers will find it easier to identify pure milk products, as any product labeled "pure cow milk" or "pure goat milk" must contain 100% raw milk [3]. - Reconstituted milk is not entirely banned; it can still be used in the production of formulated and fermented dairy products, provided it is clearly labeled as "reconstituted milk" [3].

Core Viewpoint - The new national standard for sterilized milk in China mandates that sterilized milk can only be produced using raw milk, prohibiting the use of reconstituted milk, thus ensuring a 100% fresh milk production standard for sterilized milk [1][2]. Group 1: New Standards and Regulations - The implementation of the new national standard for sterilized milk signifies a shift towards using only fresh raw milk, enhancing the purity of the product [1]. - Reconstituted milk, which is made by rehydrating milk powder, is no longer allowed in the production of sterilized milk, ensuring that products labeled as "pure milk" are genuinely made from fresh milk [1][2]. Group 2: Nutritional Comparison - Reconstituted milk undergoes two rounds of ultra-high temperature processing, resulting in significant nutrient loss, particularly of heat-sensitive vitamins such as B1, B2, and C, as well as active calcium and lactoferrin [2]. - In contrast, sterilized milk made from fresh raw milk retains more natural nutrients, enhancing its freshness and overall quality [2]. Group 3: Consumer Guidance - Consumers are advised to check the nutritional content on product packaging, ensuring that full-fat sterilized milk meets the national standards of protein content (≥2.9g/100g) and fat content (≥3.1g/100g) [3]. - Quality indicators for sterilized milk include a white or slightly yellow color with natural luster, a uniform liquid state without clumps or sediment, and a pleasant, slightly sweet taste [3].

Core Viewpoint - The implementation of the new national standard for sterilized milk in China marks a transition to 100% fresh milk as the raw material, prohibiting the use of reconstituted milk in its production [1][2]. Group 1: New Standards and Regulations - The new standard specifies that sterilized milk can only be produced using fresh milk, eliminating the allowance for reconstituted milk [1]. - Products made from reconstituted milk are not permitted to be labeled as "pure milk" or "pure dairy" [1]. Group 2: Differences Between Fresh Milk and Reconstituted Milk - Reconstituted milk is defined as milk made by rehydrating milk powder, which has undergone two rounds of ultra-high temperature treatment, leading to significant nutrient loss, particularly of heat-sensitive vitamins [2]. - Fresh milk retains more natural nutrients, enhancing the product's freshness and nutritional value compared to reconstituted milk [2]. Group 3: Market Implications - The new standard only affects sterilized milk, allowing other dairy products like yogurt and modified milk to continue using reconstituted milk [2]. - The shift to fresh milk is supported by the increasing domestic production of fresh milk, positioning China among the top producers globally [2]. Group 4: Consumer Guidance - Consumers are advised to check the nutritional content on packaging, ensuring that full-fat milk meets the national standards for protein and fat content [3]. - Quality indicators for sterilized milk include color, consistency, and taste, with high-quality products exhibiting a creamy white or slightly yellow color, uniform liquid state, and pleasant flavor [3].

Core Viewpoint - The new regulation implemented by the Ministry of Agriculture and Rural Affairs starting September 16 mandates that sterilized milk (long-life pure milk) can only be produced using raw milk as the sole ingredient, prohibiting the use of reconstituted milk, which has sparked widespread attention in the dairy industry and consumer market [1][2]. Industry Impact - The regulation is expected to benefit consumers by ensuring that long-life milk truly returns to its essence of being made from raw milk, thereby enhancing public trust in dairy products [1][2]. - For companies, the regulation represents a survival of the fittest scenario, as those that previously relied on reconstituted milk to lower costs will need to increase their raw milk procurement, driving demand for raw materials and pushing the industry towards the construction of high-quality milk source bases [1][2]. Challenges - Short-term production costs for long-life milk may rise, potentially leading to price increases for some mid-to-low-end products [2]. - The stability and sufficiency of raw milk supply will be critical in assessing the effectiveness of the new regulation; insufficient supply may force companies to cut production capacity, further concentrating the industry and squeezing the survival space for small and medium-sized dairy enterprises [2]. Long-term Perspective - The regulation is not just an adjustment of raw material standards but a correction of the development logic of China's dairy industry, aiming to solidify market foundations by requiring higher production standards to ensure consumer confidence [2][3]. - The policy encourages companies to accelerate the construction of milk source bases and improve cold chain logistics and processing technology, presenting an opportunity for the dairy industry to transition towards high-quality development [2][3]. Regulatory Enforcement - Effective implementation of the regulation requires a "complementary package" approach, including strict enforcement by regulatory bodies to prevent companies from evading the new rules through ambiguous labeling or concept substitution [2]. - There is a need for increased public education to help consumers understand the differences between reconstituted milk and raw milk, avoiding societal panic over the demonization of reconstituted milk, which is not inherently a problematic food but should be used appropriately in specific contexts [2]. Quality Orientation - The new regulation reflects a decisive shift in dairy regulation towards a quality-oriented approach, responsible for consumer health and an important step towards industry upgrading [3]. - If companies can achieve quality improvement and efficiency under the new regulation, the Chinese dairy industry can break free from the "low-end competition" trap and move towards a new phase where quality and brand trust drive market success [3].

Core Viewpoint - The new national standard for sterilized milk in China mandates that only 100% fresh milk can be used as raw material, prohibiting the use of reconstituted milk, which is often referred to as "garbage milk" [1][2][6]. Industry Impact - The new regulation primarily affects sterilized milk, commonly known as "pure milk," and aims to clarify the distinction between pure milk and reconstituted milk, enhancing consumer awareness [2][8]. - The regulation is expected to have minimal impact on major dairy companies in Shandong, as most do not use reconstituted milk in their sterilized milk products [9][12]. - The price of fresh milk is currently at an eight-year low, and the new standard may not lead to significant price increases in the short term [9][12]. Consumer Guidance - Consumers are advised to check product labels for the presence of the word "pure," production dates, and ingredient lists to ensure they are purchasing genuine fresh milk [2][4]. - Different types of milk products serve various consumer needs, with pasteurized milk being fresher but requiring refrigeration, while reconstituted milk is seen as a more economical option [5][12]. Regulatory Background - The push for using 100% fresh milk in sterilized milk production has been ongoing since 2005, with previous reports indicating that over 60% of liquid milk labeled as "pure" contained reconstituted milk [8][9]. - The new standard is viewed as a means to protect local dairy farmers and ensure the quality of milk products in the market [6][12]. Future Considerations - The new regulation may lead to a restructuring of the dairy industry, prompting companies to enhance their supply chain capabilities and potentially increasing the demand for fresh milk [12][14]. - Shandong, as a major dairy province, faces challenges such as stabilizing fresh milk supply, managing transformation costs for smaller enterprises, and building brand recognition in the market [14][15].