Introduction

Starting January 1, 2025, Taiwan officially implements zero tariffs on liquid milk imported from New Zealand. This marks the end of a 12-year tariff-rate quota transition period under the Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Cooperation (ANZTEC), signed in 2013, leading to the complete elimination of import duties on New Zealand liquid dairy products in 2025.

Despite this, according to 2025 statistics from the international cost-of-living database Numbeo, the average price of milk in the Taiwanese market is approximately USD 3.20 (about TWD 96.6) per liter. This not only ranks highest in Asia but also places Taiwan among the most expensive globally, significantly higher than major dairy exporting nations in Europe, America, Australia, and New Zealand.

While much discussion focuses on whether tariffs are the primary cause of Taiwan’s high milk prices, the key factor actually lies in the production and distribution structure of the local dairy market. The profit margin at the retail channel end is notably high, accounting for about 30%–40% of the final retail price, far exceeding international norms. Observing actual data, the domestic raw milk purchase price is around TWD 30 per liter, while the market retail price ranges from TWD 85–120 per liter, creating a significant price gap.

This article will focus on three main types: “Fresh Milk,” “Long-Life Milk,” and “Imported Milk.” We will comprehensively analyze the product structure, price composition, and relevant regulations of Taiwan’s dairy market, exploring the reasons behind its high prices, aiming to clarify the industry’s current situation and provide a reference for policy and consumer behaviour.

Understanding Milk Types

1. Milk processed with standard UHT and aseptic packaging becomes long-life milk. It can be stored at room temperature for several months when unopened.
2. Convenience store lattes use “Barista Milk” (water, concentrated milk), not fresh milk.
3. Fresh milk is defined as using raw milk as an ingredient, which, after pasteurization and packaging, must be stored under refrigeration throughout its journey to the consumer. Currently, imported ESL milk, like “Kirkland Signature Whole Milk,” can be labeled “Fresh Milk” because it maintains a cold chain during transport and sale.
4. ESL Milk is Extended Shelf Life milk. Long-Life Milk can also be called Sterilized Milk.
5. Regardless of packaging or type, once opened, it’s recommended to consume within 1–2 days and a maximum of 7 days, kept refrigerated.

Milk Sterilization Methods and Nutrient Changes

Mainstream Heat Sterilization Methods and Their Characteristics

Here are the common sterilization methods that impact milk’s shelf life and safety:

1. Low Temperature Long Time (LTLT)

   • Method: Heating raw milk to 63–65 °C and holding for 30 minutes.
   • Effect: Kills most pathogenic bacteria (e.g., Mycobacterium tuberculosis, Brucella), though some non-pathogenic thermoduric bacteria may survive. Products require refrigeration, with a shelf life of about 5–7 days.
   • Application: Typically used by small processing plants or in certain cheese-making processes.

2. High Temperature Short Time (HTST)

   • Method: Continuously heating raw milk to ≥ 72 °C for ≥ 15 seconds, or to 80–85 °C for 10–15 seconds.
   • Effect: Comparable to LTLT in pathogen control and spoilage-bacteria reduction, but better preserves flavor and offers higher throughput. Products require refrigeration, with a shelf life of about 7–12 days in Taiwan and 14–21 days in the US.
   • Application: The mainstream method for “Fresh Milk” processing in the United States.

3. Extended Shelf Life (ESL) Processing

   • Method: Heat treatment between HTST and UHT—typically 120–135 °C for 1–5 seconds.
   • Effect: Does not achieve commercial sterility; requires immediate cooling to ≤ 4 °C and continuous refrigerated storage.
   • Japan
     • Approx. 120–130 °C for 1–3 seconds: produces refrigerated ESL milk with a “best before” of about 10–14 days (vs. ~7 days for LTLT/HTST).
   • United States
     • Known as Ultra-Pasteurized (UP): ≥ 138 °C for ≥ 2 seconds, extending shelf life to 30–90 days but still requires refrigeration (not an ambient product).
   • Taiwan
     • According to a Taiwan Food and Drug Administration （TFDA） draft (June 2024), milk products with > 30 days shelf life—processed by appropriate heat treatment and near-aseptically filled—may be labeled “Extended Shelf Life Fresh Milk,” “Long-Life Fresh Milk,” or “ESL Fresh Milk.” Effective July 1, 2025.

4. Ultra High Temperature (UHT)

   • Method: Aims for commercial sterility, heating milk to 135–150 °C for a few seconds, combined with aseptic packaging, allowing room-temperature storage for several months to a year.
   • Japan (UHT/LL – Long-Life Milk)
     • Approx. 130–150 °C for 1–5 seconds: true shelf-stable UHT. Requires high-barrier aseptic packaging (e.g., aluminum-foil layers) to block light and oxygen.
   • United States (UHT)
     • Approx. 135–150 °C for 2–5 seconds: true UHT processing with direct-steam injection or indirect heating plus aseptic filling, yielding shelf-stable milk.
   • Taiwan (UHT – Long-Life Milk)
     • Approx. 135–150 °C for 1–4 seconds: produces “Long-Life Milk” (保久乳) via aseptic packaging, stable at room temperature for several months.

Regional Differences and Labeling Regulations

• Pasteurization comprises both LTLT and HTST methods.
• Japan does not have a separate ESL category; it distinguishes only between refrigerated products and long-life milk (ambient).
• In Taiwan, most “Fresh Milk” is heat-treated around 130 °C (not reaching standard UHT), labeled as “UHT Fresh Milk” rather than strictly “ESL Fresh Milk,” though it behaves like ESL (requires refrigeration).

Comparison of Fresh Milk on the Market

The following is a consolidated summary of retail fresh milk as of May 20, 2025.

Price Table

Nutritional Differences

Nutritional information per 100 mL:

Processing and Regulatory Standards

1. Fresh milk sold in Taiwan undergoes UHT heat treatment.
2. The definition of UHT for milk is established by the Codex Alimentarius Commission (CAC) and the International Dairy Federation (IDF), and adopted by EU regulations and the US Food and Drug Administration (FDA). The standard temperature is 135 °C–150 °C for 2–4 seconds, or other conditions recognized by competent authorities that achieve equivalent commercial sterility.
3. Japanese Standards: Under the Ministerial Ordinance on Milk and Milk Products, UHT is defined as 120 °C–150 °C for 1–3 seconds; Long-life (LL) milk is 135 °C–150 °C for 1–4 seconds with aseptic packaging, equivalent to Taiwan’s long-life milk.
4. Temperatures of 120 °C–135 °C for 3–5 seconds are classified as ESL processing. In Japan, pasteurized milk can be stored refrigerated for 7 days, whereas milk treated at 120 °C lasts up to 14 days chilled. Many fresh milks sold in Taiwan also use 130 °C for 3–5 seconds for sterilization.
5. The US ESL standard differs from the Taiwanese and Japanese standards. Although US ESL uses higher temperatures, it relies on near-sterile or highly hygienic conditions and still requires refrigeration to maintain shelf life.
6. Heat treatment does not significantly affect the primary nutritional components of milk (calories, protein, fat, and carbohydrates).

Nutrient Comparison: Raw vs. Heat-Treated Milk

A 250 mL glass of Taiwanese whole milk (3.25% fat) typically contains:

• Calories: 166.1 kcal
• Protein: 8 g
• Fat: 9.4 g
• Carbohydrates: 12.3 g
• Sugar: 11.9 g
• Sodium: 106.5 mg
• Calcium: 267.6 mg

Note: Values may have slight inaccuracies due to calculation and varying measurement methods. This table is compiled from literature and Taiwanese product labels for general reference. Always refer to the product packaging for actual values.

Key takeaways from the table:

1. UHT processing has minimal impact on major nutrients (casein, fat, lactose, calcium), which remain key nutritional sources.
2. Whey protein denaturation increases with heat intensity. While the total protein amount remains unchanged, the denatured proteins can still be broken down into amino acids for absorption. Nutritional value isn’t entirely lost.
3. Calcium content remains stable regardless of HTST, ESL, or UHT processing.
4. HTST causes less loss of B vitamins (B₁, B₂, B₆, B₁₂) and folate compared to ESL and UHT.
5. Folate (Vitamin B₉) is relatively heat-sensitive.

Raw Milk Price Structure and Quality-Based Pricing Mechanism

Raw Milk Value Distribution

Raw Milk Quality-Based Pricing Standards

Based on approximately 8.25% non-fat milk solids and an average fat content of 3.83%，purchase prices are as follows:

Supply Chain Roles and Processes

Key Players: Dairy Farmers / Livestock Farms (Production)、Dairy Plants (Processing)、Distributors / Retailers (Sales)

Dairy Farmers / Livestock Farms

• Dairy plants sign raw milk purchase contracts and farmers deliver chilled raw milk (temperature must be ≤ 10 °C before collection) at agreed times and quantities. Failure to meet standards results in price deductions or rejection. Contracts typically specify daily or alternate-day deliveries. Milk is stored in on-farm cooling tanks and collected by plant tankers according to schedule.
• Key Regions: Tainan Liuying, Yunlin Lunbei, Pingtung Wandan, Changhua Fubao, Taitung Chulu, Hualien Ruisui, Miaoli Tongxiao.

Dairy Plants

• Use a two-tier (winter/summer) or three-tier (by ambient temperature) pricing system, with bacterial count and somatic cell count incorporated into quality-based pricing since 1997. The pricing basis is regularly negotiated by the Raw Milk Price Review Committee.
• Aggregate raw milk from multiple farms, conduct acceptance tests based on sediment, bacterial count, and somatic cell count; standardize and blend; apply UHT sterilization (120–135 °C for 2–5 seconds) or HTST pasteurization; then fill and package.
• Responsible for raw milk testing, processing (sterilization/pasteurization, homogenization), packaging, brand marketing, and part of transportation. Related costs include plant operations, processing technology, quality control, and marketing promotions.
• Key Players: Uni-President, Wei Chuan, Kuang Chuan Farm, Quaker Foods, I-Mei Foods, Kaiyuan Foods.

Distributors / Retailers

• Finished products are distributed via self-operated or outsourced cold-chain logistics to convenience stores, hypermarkets, supermarkets, beverage shops (e.g. bubble-tea outlets), cafes, restaurants, bakeries, and supplemented by e-commerce home delivery, ultimately reaching consumers.
• Costs cover logistics and distribution, warehousing, slotting fees, store rent, personnel, and final retail margin. Slotting fees are often cited as a key factor driving up milk prices.
• Key Players: Major convenience store chains, Costco, Carrefour, A.mart, Farmers’ Association Fresh Supermarkets, Simple Mart (美廉社), PX Mart, Coolpeng (酷澎), PChome, momo Shopping, Shopee, department stores, school canteens, local grocery stores.

Milk Q&A

What are the benefits of drinking milk? What’s the main purpose?

Milk’s primary nutritional value lies in providing abundant, easily absorbable calcium and high-quality protein simultaneously. A standard 250 mL glass contains about 267 mg of calcium, far exceeding most common foods, making milk an excellent daily calcium source. It also supplies approximately 3.2 g of high-quality protein per 100 mL. Although its protein density is lower than that of meat or eggs, milk protein is a complete protein and is readily absorbed by the body.

• If your main goal is calcium intake, milk is highly effective.
• If your main goal is protein intake, meat or eggs deliver more—for example, a 63 g egg provides about 7.93 g of protein.

Is long-life (UHT) milk less nutritious?

UHT sterilization does denature some whey proteins and causes partial loss of water-soluble vitamins, but total protein content and amino acid composition remain unchanged. Therefore, its overall nutritional value is comparable to that of fresh milk. Protein denaturation primarily alters texture and may produce slight sedimentation, but does not impair human digestion or absorption of protein and amino acids. Minerals such as calcium are heat-stable and remain fully bioavailable.

UHT milk offers a longer refrigerated shelf life; once opened, it should ideally be consumed within 2–3 days (maximum 5–7 days) to ensure optimal flavor and quality. This extended shelf life does not imply any disadvantage in nutrition or safety compared to other milk forms.

What is the definition of “Fresh Milk” in Taiwan?

• Basic Definition (CNS 3056) “Fresh milk” is defined as milk made from 100% raw milk (CNS 3055), heat‐treated, properly packaged, and stored/sold/consumed under continuous refrigeration. “Raw milk” refers to milk drawn from healthy cows or goats, cooled but otherwise unprocessed.

• TFDA Clarification (2014) Fresh milk must use raw milk as its sole ingredient, be processed via pasteurization (LTLT or HTST), then packaged and refrigerated. This definition covers all fat levels (whole, reduced-fat, low-fat, skim), fortified milks, and low-lactose products for lactose-intolerant consumers.

• Regulation Effective July 2026 Only milk sourced from Taiwan and certified with the “Fresh Milk Seal,” “CAS Mark,” or “Traceability Certification (TAP)” may be labeled “Fresh Milk.”

How is “fresh milk” perceived in other countries?

Most countries lack a legal definition for “fresh milk.” Market standards and consumer perceptions are as follows:

Why does Taiwanese “fresh milk” taste richer and creamier than some foreign milk?

• Approximately 90% of Taiwanese milk undergoes UHT sterilization, promoting Maillard reactions and protein denaturation that generate a richer aroma.
• Higher milk fat content contributes to a fuller mouthfeel.
• For a less “cooked” taste, choose milk processed by LTLT or HTST (typical Taiwanese HTST: 120–130 °C for 2–5 sec versus lower-temperature HTST in Europe/US).

What kind of milk is used in bubble tea shops?

Traditional pearl milk tea often uses non-dairy creamer. “Pearl Fresh Milk Tea” implies fresh milk. “Black Tea Latte” (Latte means milk in Italian) usually means 100% milk but doesn’t specify if it’s fresh or reconstituted.

Starting in 2025, the TFDA and Ministry of Agriculture are promoting a “Voluntary Disclosure Program for Milk Sources” for chain businesses (beverage shops, convenience stores, fast food) to label their milk (e.g., “Taiwan Fresh Milk,” “NZ Long-Life Milk”). A pilot program ran from Jan-Jun 2025.

Soon, information will be more transparent. Note that whether it’s fresh, 100% reconstituted, or long-life, the nutritional difference is minimal; the main impact is on flavor and texture.

How does foreign milk enter Taiwan?

• Fresh Milk: Processed abroad via ESL and transported under cold chain; imports require tariff-quota approval, quarantine inspection, and sanitary clearance (e.g., Kirkland Signature Whole Milk).
• Frozen Concentrated Milk (“Milk Bricks”): UHT-sterilized and concentrated abroad (e.g. Australia, New Zealand), then frozen and imported as concentrated milk. Taiwan dairy plants reconstitute with water to 100% milk (e.g., Kuang Chuan Nature Milk) or blend for specific uses (e.g., Kuang Chuan Barista Milk with added functional proteins for frothing). Commonly used in convenience store lattes.
• Long-Life Milk: UHT-sterilized and aseptically packaged abroad for ambient storage. Imports require health certificates and inspection, then go directly to retail. Includes pure UHT, flavored milks, and dairy beverages.

Conclusion

Taiwan’s dairy market information is diverse and complex, but some product naming and marketing practices often mislead consumers. For example, “Ruisui Premium Low-Temperature Pasteurized Fresh Milk” actually employs HTST (72 °C/15 sec), but its “Low-Temperature” label confuses consumers; similarly, long-life (shelf-stable) and reconstituted milk are often unfairly demonized, overlooking scientific evidence and their nutritional value. Our key findings are:

1. Definition of “Fresh Milk”:

   According to CNS 3056, “Fresh Milk” refers to milk derived from raw milk, sterilized and packaged under continuous refrigeration, encompassing both UHT (120–135 °C/2–5 sec) and a small proportion of HTST (72 °C/15 sec) processes—unlike international convention that typically reserves “fresh milk” for HTST-pasteurized products only.

   I personally suggest that the term “Fresh Milk” be clearly distinguished as “Taiwan Fresh Milk” or “Domestic Fresh Milk,” with naming based on raw milk source, sterilization method, and cold-chain logistics. Additionally, UHT shelf-stable milk with aseptic packaging, if produced from locally sourced raw milk and labeled as “Long-Life Milk,” could also be classified under the “Fresh Milk” category, ensuring transparent labeling and consumers’ right to know.

2. Comparison of ESL Standards:

   • United States, Australia, and New Zealand: Ultra-Pasteurization (UP) plus cold-chain storage yields up to three months of shelf life.
   • Japan (geographically closer to Taiwan): UHT (120 °C) plus cold-chain storage yields approximately one month of shelf life.

   The Taiwanese market should refrain from negatively labeling imported refrigerated ESL milks from these countries, and instead classify dairy products based on processing temperature and shelf life to help consumers accurately understand their characteristics.

3. Cost and Profit Structure:

   • Increase profit shares for Taiwanese dairy farmers and reduce unreasonable margins for distribution channels.

   • Transparently disclose profit breakdown on packaging (e.g., Farmer X%, Processor Y%, Retailer Z%, Others W%).

     For example, imported long-life milk, as a finished sterilized product shipped at ambient temperature, could be labeled: “Farmer 0%, Processor 0%, Retailer 50%, Others 50%” so consumers understand whether purchasing imported long-life milk supports local farmers’ sustainable development.

4. Re-education on Milk Policy:

   The government’s “Fresh Milk in Every Class” policy results in over 70% of schools opting for shelf-stable (long-life) milk instead of fresh milk. Ministry of Education surveys indicate only 20.76% of schools initially select fresh milk, while 75.77% prefer long-life milk; subsequent orders from 863 schools across seven counties and cities totaled 2.42 million bottles—1.87 million long-life and 0.55 million fresh—exceeding a 70% share for long-life. Key obstacles include insufficient cold-chain transportation and storage facilities, especially in rural areas, leading many to choose the more convenient long-life option.

   Moreover, fresh milk given to students may spoil at room temperature if not consumed promptly, posing food safety risks; in contrast, shelf-stable milk can be stored at ambient temperature and consumed conveniently by inserting a straw.

   Media often stigmatizes long-life milk; however, since the main purpose of drinking dairy is calcium and protein intake, UHT plus aseptic packaging preserves nutrients equivalent to fresh milk.

   To implement the regulation that the “Fresh Milk” label applies only to domestically sourced milk, we propose revising standards as follows:

   • Definition of “Fresh”: Milk that maintains its flavor and quality for seven days refrigerated (0–7 °C) after opening.
   • Affirming the Quality of Long-Life Milk: UHT aseptic packaging does not affect calcium or protein content, which remain the same as fresh milk.
   • Adjusting Shelf-Life Criteria: Rather than defining “fresh” as milk unopened for no more than 14 days, include Taiwanese-produced long-life milk meeting the above criteria under the “fresh milk” label to balance labeling rigor with logistical practicality.

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