China to Enforce Ban on Milk Powder in Shelf-Stable Milk
Source: DairyNews.today
In a bid to further tighten its dairy regulations, China’s National Food Safety Standards and Monitoring and Evaluation Division (the "Evaluation Division") has released proposed amendments to the National Food Safety Standards for Sterilized Milk.
Announced on October 8, 2023, following extensive public consultation, the revisions to the GB25190 standard specifically target the usage of reconstituted milk, signaling a significant shift for the country’s dairy industry.
The newly proposed Sterilized Milk Standard modifications focus on three primary aspects:
Redefined Sterilized Milk Composition: The term “with or without added reconstituted milk” has been removed, stipulating that sterilized milk must be produced solely from raw milk.
Ingredient Standards Adjustment: As per GB19644, milk powder is now explicitly prohibited as an ingredient in sterilized milk, marking a departure from previous regulations.
Labeling Requirements: The mandate to label products containing milk powder as “reconstituted milk” has been eliminated, signaling an industry shift away from milk powder-based formulations in sterilized milk products.
These changes are poised to redefine shelf-stable milk in China, raising questions about the broader implications for the market. Will these new standards drive up costs for producers and consumers alike? How will the exclusion of reconstituted milk reshape the competitive landscape for sterilized milk?
Market Implications: A Shift Towards Natural Ingredients
Traditionally, shelf-stable milk in China has included reconstituted milk as a cost-effective measure, especially amid supply constraints. The latest amendments, however, clarify that sterilized milk must now derive exclusively from raw milk sources such as buffalo, yak, and camel, in addition to cow and sheep milk. Notably, the Evaluation Division has also outlined specific sterilization parameters, intending to align industry practices with modern food safety protocols.
Should these changes be formally adopted, sterilized milk products on the domestic market will exclude reconstituted milk. This shift is expected to elevate production costs, which could be transferred to consumers. Song Liang, a dairy industry expert, highlights that while this regulation could boost consumer confidence in product quality, it may also pressure retail prices if raw milk prices rise.
Consumer and Industry Perspectives on New Standards
Chinese consumers have largely welcomed the proposed changes. For instance, Guangzhou resident YoYo expressed optimism, noting that “people prefer natural, unprocessed products.” Nonetheless, there is a growing concern about potential price increases in shelf-stable milk products once the new standards are implemented.
The dairy sector, however, remains cautious. Song Liang points out that while fresh milk products are valued for their nutritional superiority over reconstituted milk, the new regulations could reshape demand dynamics. The ban on reconstituted milk in sterilized products may also curb the surplus milk supply, a situation Li Shengli, chief scientist of China’s dairy industry, has identified as a growing challenge, with milk purchase prices declining sharply in 2024 due to oversupply.
Strategic Outlook for Dairy Companies and Milk Powder Demand
China’s revised sterilized milk standards could also impact milk powder demand, as companies adapt to the prohibition on reconstituted milk. With shelf-stable milk being a leading product category, industry insiders suggest that the updated standards may help balance the domestic raw milk surplus while reducing the reliance on milk powder as a supplementary ingredient. However, Song Liang cautions that rising raw milk prices could again drive up production costs, potentially influencing sterilized milk prices in the future.
As China positions itself toward higher food safety standards, the industry will likely need enhanced monitoring mechanisms to enforce these changes, ensuring that companies adhere to the new regulations. While reconstituted milk is now off-limits for sterilized milk, other dairy categories—such as yogurt and formulated milk—will retain the flexibility to incorporate milk powder per current regulations.
Major dairy corporations, including Yili, Mengniu, New Hope Dairy, and Sanyuan, have yet to comment on how these proposed amendments will affect their use of reconstituted milk across other product lines.
The newly proposed Sterilized Milk Standard modifications focus on three primary aspects:
Redefined Sterilized Milk Composition: The term “with or without added reconstituted milk” has been removed, stipulating that sterilized milk must be produced solely from raw milk.
Ingredient Standards Adjustment: As per GB19644, milk powder is now explicitly prohibited as an ingredient in sterilized milk, marking a departure from previous regulations.
Labeling Requirements: The mandate to label products containing milk powder as “reconstituted milk” has been eliminated, signaling an industry shift away from milk powder-based formulations in sterilized milk products.
These changes are poised to redefine shelf-stable milk in China, raising questions about the broader implications for the market. Will these new standards drive up costs for producers and consumers alike? How will the exclusion of reconstituted milk reshape the competitive landscape for sterilized milk?
Market Implications: A Shift Towards Natural Ingredients
Traditionally, shelf-stable milk in China has included reconstituted milk as a cost-effective measure, especially amid supply constraints. The latest amendments, however, clarify that sterilized milk must now derive exclusively from raw milk sources such as buffalo, yak, and camel, in addition to cow and sheep milk. Notably, the Evaluation Division has also outlined specific sterilization parameters, intending to align industry practices with modern food safety protocols.
Should these changes be formally adopted, sterilized milk products on the domestic market will exclude reconstituted milk. This shift is expected to elevate production costs, which could be transferred to consumers. Song Liang, a dairy industry expert, highlights that while this regulation could boost consumer confidence in product quality, it may also pressure retail prices if raw milk prices rise.
Consumer and Industry Perspectives on New Standards
Chinese consumers have largely welcomed the proposed changes. For instance, Guangzhou resident YoYo expressed optimism, noting that “people prefer natural, unprocessed products.” Nonetheless, there is a growing concern about potential price increases in shelf-stable milk products once the new standards are implemented.
The dairy sector, however, remains cautious. Song Liang points out that while fresh milk products are valued for their nutritional superiority over reconstituted milk, the new regulations could reshape demand dynamics. The ban on reconstituted milk in sterilized products may also curb the surplus milk supply, a situation Li Shengli, chief scientist of China’s dairy industry, has identified as a growing challenge, with milk purchase prices declining sharply in 2024 due to oversupply.
Strategic Outlook for Dairy Companies and Milk Powder Demand
China’s revised sterilized milk standards could also impact milk powder demand, as companies adapt to the prohibition on reconstituted milk. With shelf-stable milk being a leading product category, industry insiders suggest that the updated standards may help balance the domestic raw milk surplus while reducing the reliance on milk powder as a supplementary ingredient. However, Song Liang cautions that rising raw milk prices could again drive up production costs, potentially influencing sterilized milk prices in the future.
As China positions itself toward higher food safety standards, the industry will likely need enhanced monitoring mechanisms to enforce these changes, ensuring that companies adhere to the new regulations. While reconstituted milk is now off-limits for sterilized milk, other dairy categories—such as yogurt and formulated milk—will retain the flexibility to incorporate milk powder per current regulations.
Major dairy corporations, including Yili, Mengniu, New Hope Dairy, and Sanyuan, have yet to comment on how these proposed amendments will affect their use of reconstituted milk across other product lines.
