Core Viewpoint - The new national standard for sterilized milk, effective from September 16, prohibits the use of reconstituted milk as a raw material, mandating the exclusive use of fresh milk, which is expected to enhance product quality and consumer trust [1][2][3] Group 1: Regulatory Changes - The new standard specifies that both sterilized milk and pasteurized milk must be made from 100% fresh milk, eliminating reconstituted milk from these products [1][2] - Reconstituted milk, which is made by adding water to milk powder, will still be allowed in other dairy products like yogurt and milk beverages, with clear labeling to inform consumers [1][2] Group 2: Nutritional and Quality Improvements - The removal of reconstituted milk is aimed at improving the nutritional value and taste of sterilized milk, as reconstituted milk undergoes multiple heat treatments that degrade its protein and vitamin content [2] - The 2024 China Dairy Quality Report indicates a continued increase in dairy production capacity, with total milk production reaching 42.813 million tons and dairy product output at 30.546 million tons, reflecting a year-on-year growth of 6.3% and 3.1% respectively [2] Group 3: Industry Impact - The new standard is seen as a significant step towards establishing a production system based on fresh milk, highlighting the government's commitment to enhancing the dairy industry's quality and integration [3] - In the short term, the demand for fresh milk from dairy companies is expected to rise, benefiting dairy farmers and fostering a stable supply chain [3] - The new regulations are anticipated to improve the international competitiveness of China's dairy industry, ensuring that imported sterilized milk meets higher standards and enhancing the reputation of domestic dairy products [3]