The state council is calling for an entire industry upgrade starting with breeding, Xinhua reported, following urgent demands for thorough testing of milk products made before Sept. 14.

The tainted milk powder scandal was seen as a major food security incident damaging not only the health of children but also hurting China's national image, an official said, putting the dairy industry "in peril" and exposing "major problems."

Plans call for the ministry of health to revise the quality and safety standard of dairy products and the ministry of agriculture to draft new examination procedures, both within a year, the report said.