There have been two outbreaks of illness in Northland and Auckland linked to drinking raw milk. They involved children as well as adults, Mr Borrows said.
But there is also a demand for raw milk, both in cities and in the country.
"The new rules strike a balance between managing the risks to public health and recognising that there is demand for raw milk," the MP said.
The regulations were developed after a lot of consultation, including with raw milk producers.
To soften their impact, the ministry will be holding workshops for raw milk producers to help them implement the rules. They also have until November 1 to fully comply.
Mr Borrows said the main difference between what is required of raw milk and pasteurised milk suppliers is that raw milk suppliers have to do more testing because their milk would not be heat-treated to kill bacteria.
The new regulations require suitable premises and equipment, animals in good health, records of sales, and labelling that spells out risk.
Raw milk suppliers will also need to be registered with the ministry, and audited.