Goat Milk

Fonterra, New Zealand’s leading dairy cooperative, showcases the advantages of grass-fed dairy in the expanding Chinese market for ‘yellow oil’ butter.

Fonterra is capitalizing on the growing Chinese demand for dairy products, emphasizing the unique qualities of New Zealand’s grass-fed dairy. The “yellow oil” butter, made from milk of grass-fed cows/goats, is particularly prized in China.

Fonterra’s greater China CEO, Teh-han Chow, highlighted the benefits of sunshine, grass, and rainfall during the Bakery China expo in Shanghai, drawing attention to the natural production methods that distinguish New Zealand dairy. The expo, which is the largest of its kind, attracted nearly half a million attendees over four days to see the latest in foodservice innovations.

As the Chinese market continues to develop, Fonterra introduced a new commercial cooking cream specifically tailored for the mid-tier commercial baking sector. Moreover, with the Chinese government’s increase of the recommended daily serving of dairy from 300g to 500g, there is a push for dairy’s role as a nutrient source.

Fonterra is also seeking to reinforce its presence in China by keeping its consumer brands and promoting the sustainable, natural aspects of its products. This strategy not only targets China but extends to other Asian markets, using successful themes from previous promotions in South Korea. With high consumer expectations, Fonterra continues to position its offerings with an emphasis on quality and sustainability, aiming to secure loyalty and growth in one of the world’s largest markets.

Wisconsin has initiated a mandatory milk testing program for avian flu virus H5N1 across its dairy farms. This measure aligns with the U.S. Department of Agriculture’s national surveillance strategy aimed at early virus detection while minimizing milk wastage.

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) announced that milk samples would be collected during routine quality checks to ensure minimal disruption. The state-specific strategy enables faster identification and response compared to other states that conduct testing at processing plants.

With the capability to process approximately 1,250 samples per week, the Wisconsin Veterinary Diagnostic Laboratory plays a critical role in this effort. To date, over 6,000 tests have been conducted since April 2024, with no cases of H5N1 reported among the state’s dairy cows. Officials state that finding no virus for three consecutive months could allow for reduced testing frequency.

Industry groups, including Voice of Milk, endorse the state’s approach for its efficiency in safeguarding both the farm environment and consumer supply. Officials emphasize that pasteurized milk remains safe, reiterating the importance of the testing program for public health and farm safety.

China officially banned the use of reconstituted milk in the production of sterilized milk under the latest revision of its national food safety standards.

China has approved new food safety standards that will ban the production of drinking milk from dry milk powder from September 19, 2025. From then on, only raw milk will be allowed to be used to make sterilized milk.

The innovation is intended to increase the level of control over the quality of dairy products and support domestic producers.

Reconstituted milk, also known as recombined milk, refers to a milk emulsion made by mixing dry dairy products with water in specific proportions.

“Put simply, it’s just milk powder mixed with water,” said an expert. The expert noted that the revisions align with both industry demands and consumer expectations for higher-quality dairy products

The ban on reconstituted milk is also expected to drive up demand for raw milk. Since sterilized milk will be made directly from raw milk — naturally rich in bioactive nutrients — it is expected the move will improve both the nutritional value and taste of the final product.

The decision became part of the updated regulatory framework, including 50 new standards and nine amendments approved as part of the state food security strategy. Previously, similar restrictions were already in force in the EU, Japan, and were also supported by the WHO and the UN FAO.

Powdered milk is also the second most frequently adulterated product in the world after olive oil. In the history of the food industry, there have been cases of adding urea, formalin, alkalis, acids and melamine to imitate full-fledged milk.

The ban in China may significantly change the structure of international trade in dairy products. According to analysts, exporting countries, primarily New Zealand and the EU, will be forced to redistribute supplies of powdered milk and adapt product lines to the new rules.

In the United States, reconstituted milk may only be used for sterilized milk production in regions with limited milk supply.

China remains the largest consumer and importer of dairy products in the world. Tighter standards are expected to reduce demand for imported milk powder, increase the share of domestic whole milk production and affect global price trends in the sector.