Because of the information asymmetry and externality of quality and safety of dairy products，regulating of government is indispensable. Regulating of central government basically should concentrates on the establishment and improvement of law and rule system，quality and safety standard system，monitoring and examining system，safety management system and authorization system concerning dairy product quality and safety；local governments regulation should focus on the implementation of law，rule，standard and policy of centre government，formulation of local law and rule concerning food safety；monitoring the dairy product safety behavior of enterprises. The quality and safety responsibilities of every subject on the dairy product supply chain need to be clearly defined by contracts and implemented efficiently with a proper mechanism so as to realize quality and safety of dairy products. The policy suggestions are：promoting the development of large scale dairy farm；perfecting contract of dairy product quality and safety；developing dairy farmer unions；promoting the monitoring and examining technology progress；creating the competing environment，supporting third-party examining service；extension of dairy farming modules，establishing documentation and traceability system；intensifying the economical and non economical punishment to the cahoots between enterprises and local governments；improving the efficiency of dairy product quality and safety administrations；increasing the punishment to the enterprise which counterfeits high quality and safety dairy products with low ones.