Dairy (Milk) Prices

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#11
Learn something today:

This is where u can track farmgate milk prices:  http://www2.fonterra.com/our-financials/...ilk-prices

FARMGATE MILK PRICES

New Zealand is unique in that 95 per cent of milk production is exported with Fonterra collecting around 87 per cent of the milk. As a result, there is no ‘market price’ set through competition for supply.

Fonterra instead calculates a Farmgate Milk Price using independently approved methodology. This enables total returns to be allocated between payments for milk and returns on the share capital invested by farmer shareholders and unit holders in the Co-operative.

http://www2.fonterra.com/our-financials/...iry-update
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#12
NZ's economy depends on Milk.

New Zealand is the world's largest dairy exporter, selling some NZ$15 billion (S$15 billion) a year, about a third of the country's entire exports.

Good news for NZ 9 months down the road:-  China ends one-child policy >> LINK

Today's reaction:-

02319 MENGNIU DAIRY
HK$ 15.340 +0.780 (+5.357%)

Question is Will the condoms maker got hit? Malaysian makers are leading the packs in condom making just like gloves.
Japanese makers are also famous with Chinese tourists in Japan buying huge quantities to take home.
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#13
China expansion on cards for a2 Milk
JARED LYNCH
11 Nov, 2015 06:10 AM
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[Image: 1pxclear.gif][i]Clearly we have got to make sure we have supply
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TRANS-TASMAN dairy company a2 Milk is considering building its own infant formula plant in Australia as it struggles to keep its Platinum-branded product on supermarket shelves.
Australia is in the midst of a baby formula shortage ahead of the world's biggest online shopping day, China Single's Day on Wednesday.
Fairfax Media revealed on Sunday that many people were clearing Australian supermarket shelves, buying trusted infant formula brands such as a2, Bellamy's Organic and Karicare, and reselling them online for a handsome profit in China.
Peter Nathan, chief executive of a2 in Australia, said the company was delighted that its Platinum brand has become desirable in China, but it needed to ensure it could meet demand.
Mr Nathan said the company had been exploring a range of options including building its own infant formula factory in Australia to striking a partnership with a local milk processor to produce it under contract.
Currently, all Platinum infant formula is produced by Synlait in New Zealand. An Australian presence would complement that deal, Mr Nathan said.
"Clearly we have got to make sure we have supply," Mr Nathan said, adding that producing under contract would be a more viable solution in the short term.
Murray Goulburn managing director Gary Helou said at the company's annual meeting last month that its plants were running close to full capacity. But the co-operative would spend $260 million to $300 million in the next 12 months to expand its nutritional powder operations, providing it secured enough customers to make the investment viable.
Infant formula has proven to be fertile ground for driving corporate activity. A partnership between vitamin maker Blackmores and Bega Cheese to produce baby formula sent Blackmores' shares surging past the $200 mark.
Such is the demand for the product that it is beginning to reshape a2 from being known as dairy food and beverage business to predominantly an infant formula operation.
The company's revenue surged 40 per cent to $NZ155 million ($143.5 million) in the 12 months to June 30. This was largely due to its infant formula sales soaring 445 per cent.
Mr Nathan said the company had the capacity to source more milk from cows carrying only the a2 protein to help meet the infant formula demand.
"We can ramp up our herd production and go through the rigorous testing process," he said.
The company is forecasting "strong growth" in revenue and operating earnings in the 2016 financial year, assuming demand for infant formula in Asia and Australia continues unabated.
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#14
1:53pm November 10, 2015
Aussie mums erupt over formula shortage

 
AAP

Chinese demand for "safe" baby formula is fuelling a shortage that's left mums in Australia high and dry.
Fearful Chinese parents are turning to Australian-made products after a number of deadly domestic formula scares, including one contamination incident in 2008 that killed six babies and made 300,000 others sick.
These affluent families want high-end, Aussie-made formulas such as the a2 and Bellamy's Organic ranges.
The surge in demand has left many Australian mums complaining they can't source the brands they've always fed their babies.
It has sparked reports of people stripping supermarket shelves of quality formulas, knowing they can be resold for enormous profit to Chinese buyers desperate for safe products.
Onsellers are turning to sites such as eBay, using ads in English and Mandarin to offer products for as much as $190 a tin for the a2 formula which normally sells for about $30 - a markup of more than six times the Australian price.
On Tuesday, a tin of Bellamy's Organic infant formula was listed for $150. Its recommended retail price is $24.70.
The a2 Milk Company says demand for its products - which are manufactured only in Australia and New Zealand - has skyrocketed over the past six months, forcing it to ramp up production.
The company already exports to China, but some Chinese still prefer to source what they need from Australia because they fear counterfeit products.
Chief executive Peter Nathan told AAP on Tuesday he hopes supply issues being felt by Australian customers can be resolved relatively quickly, without any lasting impacts on the a2 brand.
Bellamy's Organic - which manufactures solely in Australia - has seen its Facebook page bombarded by angry local customers.
Some mums want to know why an Australian company built on the back of Australian customer loyalty isn't putting its local market first, and is still exporting product to China and elsewhere.
Other mums appear to be at their wits' end, unable to satisfy their babies with other brands.
"It gets really desperate when you've reached the bottom of that last tin and you've been waiting 2 months without any stores restocking, just running around in circles," Layla Vue wrote.
Bellamy's declined AAP's request for interview, but did issue a statement saying it's increased production and hopes to resolve the shortage by the end of the month.
In the meantime, Coles is limiting customers to four cans of formula each, and Woolworths to eight cans each to help stretch supplies.
That point was proven on the weekend, when photos taken by an angry Melbourne mum surfaced. They showed a group of people working together to fill entire trolleys with formula at a Woolworths store, leaving shelves bare.
© AAP 2015


Read more at http://www.9news.com.au/national/2015/11...H6kCYdu.99
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#15
http://www.dailymail.co.uk/news/article-...rmula.html

Milking the system? Woman buys an ENTIRE PALLET of baby formula at Woolworths... as tins disappear from shelves and turn up on Chinese eBay at double the price
  • Mother posted image of woman bulk buying in-demand milk formula 

  • She slammed Woolworths for letting mother leave with two trolleys full

  • Bellamy's Organic milk formula is reportedly out of stock across Australia 

  • But it has appeared in vast quantities for double the price on Chinese eBay
By JENNY AWFORD FOR DAILY MAIL AUSTRALIA
PUBLISHED: 21:35 +11:00, 9 November 2015 UPDATED: 14:13 +11:00, 10 November 2015

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A mother who photographed a group of shoppers allegedly piling two supermarket trolleys high with in-demand organic milk formula amid an apparent shortage said it looked like a 'smooth operation'.
Parents have recently vented their frustration that Bellamy's Organic milk formula has 'disappeared' from shelves in Australia, but can be bought for double the price on on Chinese eBay.
So Jessica Hay said she was 'shocked' when she allegedly spotted a group bulk buying hard-to-find Platinum Formula in full view of staff at the Woolworths in Epping Plaza, north of Melbourne.
She shared a picture of a shop assistant standing next to an almost-empty crate after the group wiped out the pile of about 50 tins, which retail for up to $24.70 each, last Saturday.
Scroll down for video 


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A mother has posted a photo (pictured) appearing to show a shopper buying two trolleys full of in-demand Bellamy's Organic milk formula at Woolworths amid an apparent shortage 
'My blood was boiling for the mothers having problems finding A2 for their babies. I was feeling sensitive because I've got a newborn,' Ms Hay told [url=http://www.smh.com.au/national/health/mother-behind-photo-of-a2-platinum-baby-formula-bulk-buy-speaks-out-20151109-gkudhb.html]Fairfax Media

'If they were with babies, it would be understandable, they need to feed their kids too. But it felt like a smooth operation, like they did this all the time.'
The post has infuriated parents, with many mothers sharing the image after having difficulties sourcing the popular product.  


AnneMaree Chapman slammed Woolworths for allegedly allowing the group to purchase the large quantity of baby formula, saying it was putting the health of many babies at risk.
She shared the image with the caption: 'We are in a formula shortage and you are allowing this? These people bought all of this A2 platinum formula...all of it,' she wrote in the Facebook post. 
'What happened to four tins maximum per person? Look at the empty crate in the picture?  

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AnneMaree Chapman slammed Woolworths for allegedly allowing one customer to buy all the Bellamy's Organic milk A2 Platinum Formula at the Epping Plaza supermarket, north of Melbourne

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The mother criticised Woolworths in a Facebook post, saying a shop assistant should have stepped in

'Well done for letting some babies now go hungry, struggle with diarrhoea and reflux from their mums needed to change formulas. You actually saw this and allowed it? Disgusting.'
A Woolworths spokesman told Daily Mail Australia the supermarket worked to ensure there was sufficient stock for all of our customers in our supermarkets.
'In the case of baby formula we have an eight can limit per transaction. We are reminding stores that this is in place to make sure all shoppers have the opportunity to purchase the items they need,' he said.
Parents have recently voiced their frustration over the ongoing shortage of the popular brand of organic milk formula - blaming the shortfall on hoarding in China.
They have reportedly been unable to find Bellamy's Organic milk formula in Australian stores, but the in-demand milk formula has been showing up in mass quantities on Chinese site, Taobao.
Bellamy's Organic Step 1 Infant Formula which retails for $24.70 is being sold on Taobao for about $52, double the price.
The post showing the mother bulk buying the milk formula has infuriated parents and it has attracted more than 6,000 likes.
Esther Diaz‎ commented: 'I just want to know if Woolworths employees think this is acceptable????? Why is this allowed to happen?' 
Kerryn Louise said: 'This is disgusting. Woolworths why isn't there a limit on how many tins of formula you can buy at one time?'  

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Bellamy's Organic milk formula is sold on Taobao, the Chinese equivalent of eBay, for double Australia's retail price

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+9

The sought-after milk formula can also be found on eBay, which has fewer listings - slightly over 300, compared to 500 on Taobao 

'It is horrible to think that some mothers are struggling to feed their babies because it is being brought buy the trolley load and on sold or shipped overseas. How is this allowed to happen?'
Woolworths confirmed that all stores have an eight can limit per transaction, to ensure shoppers 'have the opportunity to purchase the items they need'.
A spokesman said: 'Woolworths ensures there is always sufficient stock for all of our customers in our supermarkets.' 
At a rough estimate, Taobao has 500 listings for Bellamy's products, and about half of these items are the coveted, apparently impossible to find tins of milk formula which are also widely available on eBay.
'An absolute disgrace Bellamy is prioritising the lucrative Chinese market over the needs of Australian babies and mothers,' Joanne Yap wrote on Facebook.
'Ashfield [in Sydney] alone has at least three shop fronts with full shelves which can be openly seen mass packing and shipping of Bellamy's and other brands of baby formula to China,' Ms Yap fumed.
The acute shortage was being felt across Australia. 

Families struggle to feed children due to demand for baby formula


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The milk formula has reportedly been spotted in some small retail stores, while parents have had no luck buying them from Coles and Woolworths

'How long is there going to be a shortage for?' irate West Australian mum, Rachel Mcmullen, said.
'I've gone to every store in Perth and have some supply but it's not going to last forever and it's become very frustrating.'
Another mother, Marta Miranda, said she had checked Coles and Woolworths for the fourth week running in hopes of buying milk for her child, only to leave empty-handed and disappointed every time.
She was not alone.
Kate Hobart said she called 12 stores but had no luck getting her hands on Bellamy's milk for her child.
'Apparently I can order on your website but need to buy six at a time - which I can't afford.' Ms Hobart wrote on Facebook.

While Aussie mums were struggling to find stock, Bellamy's milk formula was reported to be available in small stores, either for a heavily marked-up price or set aside to be exported overseas.
A photograph posted by Eric Truong showed a chemist in suburban Springvale, 25km south of Melbourne's CBD, with several boxes of Bellamy's products.
Another photograph posted Facebook also showed cartons of Bellamy's formula milk stacked in a small shop, none of which were available for sale to ordinary Australian mums and dads.
An accompanying note read 'All sold to Marco'.
Bellamy's said 20 per cent of its production was exported and it was doing everything it could to ease the situation.

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Mums are demanding to know when they will be able to buy Bellamy's Organic milk formula, which has been missing from supermarket shelves in recent weeks

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Bellamy's Organic milk formula is missing from supermarket shelves in Australia but can be bought online for double the price

The Tasmanian company's chief executive Laura McBain - who is in Shanghai - told Fairfax Mediathat foreign buying had intensified in the lead-up to a Chinese online shopping event, Singles Day, on November 11.
'As a result, supermarket shelves in Australian are being wiped out. We didn't anticipate we'd have a situation where mums couldn't access our products,' Ms McBain said. 
Bellamy's has been moving into the Asian market, opening an online flagship store in April.
Its Australian website homepage offers visitors the option to view its Chinese site. 
When Daily Mail Australia rang Coles Broadway and Woolworths Surry Hills on Sunday night, staff at both grocery retailers said they had no stock of Bellamy's Organic milk formula - in either step one, two or three. 
'We don't have any,' the Coles staff member said.
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Angry mums say the Tasmanian company is catering to the lucrative Chinese market at the expense of ordinary Australian families

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There appears to be a formula drought across Australia, with many mums saying they cannot get hold of the elusive Bellamy's Organic milk formula

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Bellamy's says it is doing everything it can to ease the shortage. It denies claims its products are going to China at the expense of Australians
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#16
  • Nov 14 2015 at 12:15 AM 
China's appetite for Australia's new white gold: baby formula
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Chinese parents are going to extreme measures to ensure their infant formula is clean and safe, writes Angus Grigg.

NaN of

[img=620x0]http://www.afr.com/content/dam/images/g/k/y/d/s/4/image.related.afrArticleLead.620x350.gkxnml.png/1447393551777.jpg[/img]Cindy Chen, at home with her son Yuan Yuan, 27 months, and cans of baby milk formula bought from Australia.Jonathan Browning
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by Angus Grigg
When Chen Gia returned from Australia last month, she had three additional suitcases and 18 cans of infant formula. "That's what everyone does," says the Shanghai-based mother.
The way Chen tells it, there are few others options for parents in China but to smuggle the so-called "white gold" into the country.
"Officially you can only bring in two cans but they never check you at customs," she says. For Chen, it's not just about price.
The more important issue is quality and food safety. She could buy the same Bellamy's Organic formula at online stores in China, but she can't be certain it has not been tampered with. "Everyone knows about the food scandals in China," she says.
[img=620x0]http://www.afr.com/content/dam/images/g/k/y/e/5/5/image.imgtype.afrArticleInline.620x0.png/1447386688654.jpg[/img]For Chinese families the erosion of trust in domestic food standards has changed buying habits and family priorities. Fairfax
For this reason, Chen and thousands of other parents across China choose to import infant formula through the so-called "luggage channel". This involves parents, friends and family bringing it in by the suitcase-load from overseas.
While popular for frequent travellers, this method is tiny compared to the more expensive and higher-risk parallel trading or daigou route, where infant formula is shipped through the post.
Traditionally, such businesses would have been run out of Hong Kong, but in recent years authorities have cracked down hard on parallel trading and smuggling, after shortages of infant formula in the city.
Now traders and travellers can only take out two tins per person each day, after infant formula was listed as a "reserve commodity" in early 2013.


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But that didn't mean demand on the mainland suddenly evaporated. Traders just moved their business to places like Australia, which has a strong reputation for clean, safe food.
MORE SUPPLY THE ANSWER: JOYCE
During a visit to Beijing during the week, the often parochial Agriculture Minister, Barnaby Joyce, was sympathetic to the plight of Chinese parents.
"You look at the pollution in China and you can understand why, on a day like today, they are so sensitive about what their baby drinks," he said in Beijing, as the official air quality reading hit "heavily polluted".

"They're looking for a clean, green product and we provide that."
"The answer to this is not banning people from buying our product. The solution for everyone is supplying more of the product."
And while Australians might feel as if they are at the centre of surging Chinese demand, online sales figures suggest otherwise. Australian brands don't figure in the top six best sellers on Yihaodian, one of China's most popular online shopping sites.
The Dutch and Germans dominate, with four of the top six spots, while Karicare from New Zealand is ranked fourth.

But for 35-year-old mother Chen Xiejia, mother of Yuan Yuan, aged 27 months, even reputable sites like Yihoadian or JD.com are not to be trusted.
"We would never buy infant formula online," she says. "How do we know it's not fake?"
Instead, a friend living in Perth sends over six to eight cans of Aptamil Junior every two months via post.
"We only trust the milk formula because it's my best friend who is sending it over. She is not doing it as a business, just as a favour for us," says Chen.
The complete erosion of trust in Chinese food standards happened in 2008 after the chemical melamine was mixed into formula to boost calcium readings and allow producers to use less milk. It left children malnourished and with kidney stones, and resulted in 13 deaths and more than 50,000 infants being hospitalised.
"I'm not sure Chinese people will ever trust local formula again," says 35-year-old Chen.
This suggests the raiding of supermarket shelves in Australia is not about to stop.
It's also causing shortages for parents in China.
"My friend could only send three cans because they had run out of stock in Australia," says Chen of the delivery which arrived on Thursday night.
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#17
a2 share price has been on a tear...

a2's infant formula sales surge 330% in four months
DateNovember 17, 2015 - 12:05PM
Jared Lynch
Business reporter

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A2 chief executive Geoff Babidge said infant formula is becoming "a more significant growth driver" for the company, accounting for half its overall revenue. Photo: Louise Kennerley

Sales of a2 Milk's infant formula have soared more than 300 per cent in four months to account for almost half of the trans-Tasman dairy company's total revenue.
A2's Platinum infant formula, which launched in August 2013, is one of the brands that has been stripped from Australian supermarket shelves on the back of surging Chinese demand.
Its sales totalled $38 million in the four months to October 31 – a 337 per cent increase compared with the same period last year.
Chief executive Geoff Babidge said infant formula was "emerging as a more significant growth driver for the company" and now comprised about 47 per cent of a2's total revenue.
"This exceptional performance indicates the increasing appeal and growth potential for the a2 Platinum brand in both Australia, New Zealand and China and additional markets in the future," Mr Babidge said.
The company's shares leapt 6.6 per cent on Tuesday morning to a record 89.5¢ - extending a 16 per cent gain in the past six days after China's biggest internet sale "Singles Day" caused the sell out of Platinum infant formula across many Australian supermarkets.
The strong growth comes after A2 was initially handicapped in capitalising on the so called "white gold rush" for infant formula in China. Its New Zealand contractor, Synlait - which produces all its formula - missed out on the first round of approvals from Beijing authorities last year to export infant formula.
In July 2014 China slashed the number of imported brands from more than 800 to about 94 in an effort to crack down on the number of brands that had flooded the market following the country's melamine infant formula scandal in 2008 which killed six babies and put another 54,000 in hospital.
During the first round of Beijing approvals, Synlait was finishing the construction of a new dry blending and packaging factory for infant formula. It gained Chinese certification three months later in September 2014 after the plant was completed.
Mr Babidge said demand for infant formula had "significantly exceeded production forecast[s]" but the company had grown its milk supply in New Zealand to 100 million litres to supply its domestic and Asian customers.
Synlait's plant has a processing capacity of 30,000 tonnes per annum, or up to 110 cans per minute, making it a "cost competitive solution for large volume customers", the company said in a statement.
But a2's Australia chief executive Peter Nathan said last week the company was exploring options to produce infant formula locally, whether through a contract with another dairy processor or building its own plant.
He said any production of infant formula in Australia would complement its agreement with Synlait.
Elsewhere, Mr Babidge said a2 expansion into the US – which was a thorny issue between its one of its main suppliers and once biggest shareholder, the billionaire Perich family – had missed its sales targets.
But he was adamant the company was making inroads in America.
"The … launch in the US market is progressing although sales are behind budget given delays in achieving targeted distribution," Mr Babidge said, adding it products were available in about 65 per cent of the southern Californian market.
"[a2 is] on track for similar levels in Northern California. At this early stage, rate of sale is meeting retailer expectations within the specialty milk category."
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#18
  • Nov 17 2015 at 4:28 PM 
China cracks down on infant formula smugglers
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3 reasons China will have a soft landing
by Angus Grigg
 
The stripping of infant formula from Australian supermarket shelves for resale in China is set to become more difficult under a draft law proposed by Beijing, which aims to tighten regulations on imported food sold online.
At present foreign food products sold via China's booming e-commerce sector are largely exempt from local regulations, but the central government appears determined to close this loophole and bring the e-commerce sector into line with traditional retailers.
If the draft law is approved in its current form it will see more stringent checks at mainland ports, a requirement for Chinese labelling and tougher food safety protocols.
[img=620x0]http://www.afr.com/content/dam/images/g/j/f/e/m/m/image.related.afrArticleLead.620x350.gl13ro.png/1447745020523.jpg[/img]Demand for foreign infant formula has risen in China since 2008, when a Chinese infant formula was contaminated with melamine. New York Times
While the new requirements may make it more difficult for parallel traders to buy products like infant formula, vitamins and cosmetics in Australia for re-sale online in China, the law is also likely to dent sales for smaller Australian companies which don't have operations in China or a local distributor.
At present an estimated 50 Australia companies are using this loophole to sell products online in China.
"I think the main people affected will be some of the smaller sellers on Alibaba's Taobao, who are re-selling Australian and other imported foods without the labels and licensing needed for the offline channel, and often with quite informal supply chains," says Leonie Lethbridge, ANZ's regional chief operating officer, based in Shanghai.
"Longer term it will encourage businesses to establish an entity in China and to invest in the marketing and distribution of their products."


The rapid growth of online sales in China, which are forecast to double to $1 trillion by 2018, has been cited as the reason for the tightening of regulations.
The draft law released late last month said it aims to "standardise the supervision and administration on the safety of foods imported via cross-border e-commerce."
Ms Lethbridge said the overwhelming complaint about online sales from Chines consumers was about fake goods.
"This new law should enable better policing of this, and better protection for consumers," says Ms Lethbridge. "For Australian products that are already very well known in China, it should also give them better control over their brands and how their products are sold."

If the new law is strongly enforced it would make it more difficult for traders in Australia to send up the likes of Bellamy's infant formula or Blackmores vitamins to China via the post.
This is a seen as a significant sales channel for both companies even though their products are registered on the mainland, as Chinese consumers remain wary about the safety of goods which have been handled in China.
Such wariness has been cited as the reason for infant formula shortages in Australian supermarkets over recent weeks and led to calls for a limit to be placed on the number of containers an individual can buy.
Traditionally parallel traders bought the likes of infant formula in Hong Kong for resale on the mainland, but this channel has been shut down by the imposition of a two can limit on purchases after shortest in supermarkets.

The United States Department of Agriculture said selling directly to consumers in China via e-commerce sites was an attractive first step for many smaller companies.
"Cross-border e-commerce has offered new-to-market companies a relatively easy entry to the Chinese market," the USDA said in a report.
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#19
http://www.dairyinnovation.com.au/di-blo...is-so-high

Very interesting read on production and constraints of formula production Down Under...

So far there are only 8 businesses licensed to pack and sell infant formula into China...

9)   Only a few businesses are licensed to pack and sell infant formula into China
Demand for infant formula in China from Australia has been in the news lately. Demand is high but only a handful of manufacturers and blenders are approved to supply infant formula products from Australia directly into the Chinese retail distribution market.
The table below shows the range of Australian based manufacturers of retail infant formula who are permitted to export directly into China as at 29 August 2015. [Image: Infant%20formula%20Australia20150928-1.jpg]
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