Regulatory Updates on Raw Material Standards and Processing Practices
At the end of March 2025, China’s State Administration for Market Regulation (SAMR) issued an announcement focused on enhancing the management of raw and auxiliary materials used in infant formula milk powder production.
The regulation sets out clear standards covering:
- Raw and auxiliary material quality
- Dry-process manufacturing requirements
- Storage and transportation management
The announcement also encourages manufacturers to use fresh cow milk as a raw material for producing infant formula to further improve product quality and nutritional value.
Industrial Development: New Focus on Dairy Clusters
Separately, on April 24, 2025, the Consumer Goods Industry Department of the Ministry of Industry and Information Technology (MIIT) announced the first batch of prioritized traditional food production zones and specialty food industries nationwide.
Among the 40 recognized zones, two dairy sectors stood out:
1. Hohhot Cow Milk Products
- Hohhot, located in the fertile Chilinchuan Grassland at 40°N latitude, is part of the internationally recognized Golden Milk Belt.
- As China’s key dairy production hub, Hohhot leads the country in:
- High-quality dairy cow inventory
- Annual milk output
- Per capita milk availability
- Milk processing capacity
- In 2024, the city produced 2.22 million tonnes of milk, up 470,000 tonnes compared to 2021 — maintaining four consecutive years of growth.
- Dubbed the “Dairy Capital of China,” Hohhot is home to major dairy giants:
- Inner Mongolia Yili Industrial Group Co., Ltd.
- Inner Mongolia Mengniu Dairy (Group) Co., Ltd.
- The full dairy industry chain revenue in Hohhot exceeded USD 35.67 billion (RMB 256 billion) in 2024.
The city aims to surpass USD 41.80 billion (RMB 300 billion) by the end of 2025 by promoting green agriculture and specialized industrial development.
2. Fuping Goat Milk Products
- Fuping County, Shaanxi Province, is known as:
- The “Hometown of Dairy Goats in China“
- The “Capital of Goat Milk“
- A global model for dairy goat industry development.
- As of 2024:
- 950,000 dairy goats are raised in Fuping.
- Annual goat milk output reached 235,000 tonnes.
- The total industry chain output value topped CNY 15 billion.
- Fuping has actively built the “Fuping Goat Milk” regional public brand under the development strategy “Fuping Goat Milk, Strengthening the Nation,” boosting visibility, branding, and competitiveness.
Policy Implications
Being listed among MIIT’s key cultivated zones will:
- Support industrial cluster development.
- Enhance brand influence of local enterprises.
- Secure additional government support for companies operating within these clusters.
These initiatives align closely with China’s broader goals of modernizing its dairy sector, improving infant formula safety and quality, and promoting local specialty agricultural products.
Stay informed on China’s evolving dairy sector regulations and market opportunities with ChinaInformatics.com.
Unlock premium insights on policy impacts, leading industry clusters, and strategic brand developments.
[Subscribe Now] for full access.
