Growing demand for powdered milk formula among China’s middle class and online direct distribution are driving major investments in processing capacity, the head of Australia’s largest dairy producer Murray Goulburn said Wednesday [16 March 2016]. Murray Goulburn Unit Trust on Tuesday announced plans to build an A$280 million ($208 million) formula processing factory in partnership with US-based Mead Johnson Nutrition and Indonesia’s Kalbe Nutritionals. The first stage of the plant in the Australian state of Victoria will be operational in early 2019 and will initially produce 45,000 tons of powder formula each year, Murray Goulburn said in a statement…Full Article: The Global Times Mar 2016

Key Point

  • Chinese e-commerce websites/distributors (e.g. Alibaba Group) reportedly account for 66% of China’s dairy product imports.

ChinaAg Comments

  • In January 2016, the Blackmores and Bega Cheese JV launched three infant formula products for sale in Australia (store shelves) and China (e-commerce). Approximately 20,000 tins of infant formula from the Australian dairy JV were available for sale on Tmall.com, an Alibaba controlled e-commerce website. Customers can reportedly only purchase two tins per day and up to four total per week.
  • In October 2015, Australia’s Blackmores (consumer health products) and Bega Cheese (dairy products) signed a joint-venture (JV) to produce and market infant formula products to Australia and Asia.

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