TAIPEI (Taiwan News) — Agriculture Minister Chen Chun-chi (陳駿季) announced Wednesday the ministry will work with dairy producers to promote locally produced fresh milk.

Chen said the ministry held discussions in May with industry stakeholders and foodservice associations about the initiative. He added that most businesses will support the policy, per CNA.

Most beverage and breakfast shops in Taiwan use imported frozen concentrated milk, known as "business milk," for their drinks. This product is typically made from a blend of frozen concentrated milk, milk powder, and milk fat. It can be stored for up to one year, reconstituted with water, and costs 40% less than fresh milk.

Approximately 100,000 tonnes of frozen concentrated milk enter convenience stores and the foodservice industry annually in Taiwan. Last year, imports of business milk reached 26,300 tonnes, with 65.72% from New Zealand and 34.28% from Australia, according to the Customs Administration.

Fang Ching-chuan (方清泉), secretary-general of the Taiwan Dairy Association, said that government regulations do not require frozen concentrated milk to indicate its country of origin or raw milk content. He added that this lack of transparency often leads people to mistakenly believe the product is fresh.

The ministry has begun developing technology to distinguish between fresh milk and frozen concentrated milk. Chen said the ministry will also support small dairy producers to build their brands and obtain dairy certification and fresh milk labels.

The Food and Drug Administration said that only products holding a fresh milk label or an agricultural product certification label can be labeled as fresh milk. The administration said the policy aims to ensure food safety and is set to take effect in July 2026.

Dairy product manufacturers with unclear labeling on their packaging may face fines ranging from NT$30,000 (US$926) to NT$3 million. If labels are found to be exaggerated, or if products are mislabeled as fresh milk, the ministry will impose penalties ranging from NT$40,000 to NT$4 million.