China's cattle and dairy sectors are showing signs of recovery following months of losses, as targeted support policies begin to take effect, officials with the Ministry of Agriculture and Rural Affairs said on Thursday.

Meat production from pigs, cattle, sheep and poultry reached 48.43 million metric tons in the first half of this year, up 2.8 percent from 2024, Vice-Minister Maierdan Mugaiti said. Dairy output rose to 18.64 million tons, a modest increase of 0.5 percent.

While meat and dairy production have remained stable overall, the beef and dairy industries have faced financial pressures since last year as a result of falling market prices and rising production costs.

Huang Baoxu, head of the ministry's Bureau of Animal Husbandry and Veterinary Services, said cattle and dairy farmers are seeing a turnaround thanks to a comprehensive package of relief measures.

"Beef cattle farming has generally returned to profitability, and the dairy sector is recovering," Huang said at a news conference.

Since the Spring Festival holiday, live cattle prices have gradually rebounded from previous lows, driving a rapid recovery in the beef market. According to official data, beef cattle operations have remained profitable for three consecutive months.

To stabilize the industry, the ministry has expanded high-quality breeding cow populations, improved feed supply, and enhanced disease prevention and quality control. Huang said the government is also working to develop domestic beef grading standards and encourage higher prices for premium products.

Meanwhile, the dairy sector, though still under pressure, has remained stable due to improved cost controls and adaptive capacity adjustments. The number of Holstein dairy cows, China's dominant breed, fell by 4.2 percent in June compared to a year earlier, indicating a scale-back in production to align with market conditions. Production costs per kilogram of milk dropped 7.7 percent over the same period.

The ministry expects further improvements in the coming months, especially during July and August, when heat stress typically reduces milk output while demand for cold dairy products surges. In September, new national standards for sterilized milk will take effect, banning the use of reconstituted milk powder in such products.

The updated standards stipulate that only raw milk can be used as the base ingredient for sterilized milk, prohibiting the use of reconstituted milk, also known as recombined milk, which is made by mixing dry dairy products with water.

"This move reinforces the pure fresh milk nature of sterilized milk and preserves more active nutrients. It will help meet rising consumer expectations for higher-quality dairy products and support market recovery," Huang said.

To ensure a lasting rebound, the ministry plans to extend the cattle and dairy value chains and boost competitiveness on the international market. Local authorities have been directed to support the breeding of high-quality cattle, strengthen credit access for farmers and closely monitor herd sizes to prevent overcapacity.

Huang said the dairy sector will also receive further support for integrated farming and processing, domestic breed innovation and deep-processing technologies.