China has banned the use of milk powder in the production of sterilized milk

On October 8, 2023, China introduced significant changes to its GB25190 standard, marking a pivotal shift in its dairy industry. These revisions, aimed at regulating the use of reconstituted milk in sterilized milk products, mandate the exclusion of such milk and specify the use of raw milk from specific animals. The changes, while expected to enhance product quality, could lead to increased production costs and potentially higher consumer prices due to the use of more expensive raw milk. The decision has sparked mixed reactions among consumers and professionals in the dairy sector, with concerns about the impact on the competitive landscape, retail prices, and the dairy industry's balance. The new standards could also influence the demand for milk powder as companies adjust to the prohibition of reconstituted milk. The response from major dairy corporations remains pending, with particular focus on how they will adjust their product formulations and production strategies in light of these developments.