China has further tightened its borders to infant formula made in other countries. New restrictions now require foreign makers of milk powder to register their product and their manufacturing and storage centers with the Chinese government before it can be sold in the country.
The demand for foreign-made milk powder, and especially infant formula, escalated in 2008 when at least six babies died and more than 300,000 children fell ill after consuming milk products tainted with melamine. Melamine, a toxic chemical, had been added to watered-down milk to inflate protein levels.
These new restrictions might be an attempt to strengthen sales of domestically made milk powder products, which have taken a hit since the melamine scare. Babytree.com, a large online forum for Chinese parents, found that two-thirds of families use infant formula and that foreign brands make up 60 percent of the market share. That demand has caused foreign-made infant formula prices to jump by a reported 30 percent or more in China since 2008.
The new regulations went into effect May 1. Early last week, a list was released with 41 foreign companies and manufacturing sites that were registered to sell milk powder products in China. So far, just six of 13 New Zealand companies and two of 19 Australian companies that export infant formula to China have been registered under the new process.
(c) Hoard's Dairyman Intel 2014
May 12, 2014
