China’s food safety watchdog has issued a regulation, effective as of Oct. 1, to tighten supervision on baby formula.Both domestic and overseas baby formula producers must register and secure permits from the China Food and Drug Administration if they want to sell their products in China. If they are using foreign raw materials, they must specify the place or country and vague phrasing like “imported milk,” “from foreign pastures,” or “imported raw materials” are forbidden, according to the Baby Formula Registration Regulation issued Wednesday [8 June 2016]…Full Article: Xinhua Finance June 2016

Key Point

  • In 2015, China produced 700,000 MTs of baby formula, which accounted for 65% of the country’s infant formula market share (by annual sales).

ChinaAg Comments

  • 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.
  • 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.
  • From 2008 to 2014, Chinese (incl. Hong Kong and Macau) imports of milk powder increased from ~181,500 MTs to more than 1 million MTs, with New Zealand accounting for nearly 70% of this supply. The majority of these imports were comprised of whole powdered milk (fat content >1.5%), a key ingredient used in China to produce infant formula, milk beverages, reconstituted milk and yogurt, as well as confectionary products.

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