Purefine Nature, a fast-growing Australian family brand, announced it will officially launch its formula milk products in the Chinese market to cater to the demand for foreign products. The first product will be on sale, both in supermarkets and China’s largest e-commerce retailer Tmall, in July [2016], and is expected to be available in 50 cities by the end of this year. “We don’t want to just sell baby formula here, but also redefine the home market in China, which now is now fragmented,” said Ken Smith, chairman of Purefine Nature and also chairman of the Australia-China Business Council Victoria…Full Article: China Daily May 2016

Key Points

  • In April 2016, Australia’s Prime Minister led a business delegation (~1,000 businesses) that visited China as part of the Australia Week in China program (11-15 April 2016).
  • In April 2016, in the wake of fake infant formula products being distributed nationwide, China’s Ministry of Finance announced that by 2018 all infant formula sold in China (including e-commerce, imports) must be registered with China’s food and drug agency.
  • According to a Dairy Analyst from Distribution Productivity Promotion Center of China Commerce, more than 80% of foreign infant formula brands sold in China entered the market after 2008 (see Melamine Scandal).

ChinaAg Comments

  • In April 2016, Australia’s Murray Goulburn Co-operative announced that it was parting ways with its managing director due to poor milk powder sales in China.
  • In April 2016, a Beingmate Baby & Child Food authorized dealer was found selling fake/counterfeit Beingmate (China), Abbott Laboratories (USA), and Vitacare (New Zealand) infant formula products.
  • As of early 2016, Chinese e-commerce websites/distributors (e.g. Alibaba Group) reportedly account for 66% of China’s dairy product imports.
  • In October 2015, new Chinese laws regulating the production and distribution of infant formula powder came into effect. These laws include instituting a new registration system, production certificates (valid for 5 years), and imported infant formula must have certify its origin. According to a Chinese dairy expert, the new law will help regulate infant formula prices and limit the number of products a company can market. China’s new infant formula polices are expected to more than half the number of Chinese infant milk powder brands to approximately 600 to 800.
  • In May 2015, the standing Committee of China’s National People’s Congress (NPC) passed a new food safety law would go into effect on 1 October 2015. The new law stipulated that infant formula producers must register their powdered milk formula with China’s food and drug regulator. In addition, the law has increased fines and punishments for producers who add inedible substances to their products as well as suppliers who sell illegal substances to producers.

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