The great demand for milk powder in mainland China has led to baby formula shortages in different countries. The major milk shopping spree on China’s Singles Day has now left the shelves in Australia empty. The milk shortages lead to heated online discussions, both in Australia and in China.
Unofficial Chinese exporters are busier than ever buying baby formula in Australian supermarkets and pharmacies to ship to China. It is a highly lucrative market for them: the average price for a tin of milk powder is AUD 25 (±18 US$), but Chinese mums are willing to pay up to AUD 80-100 (58-72 US$) per tin.
Due to the high demand of baby powder in China, Australian-based Chinese, especially international students, frantically buy boxes of milk powers to sell to their Chinese contacts. It has left shelves empty in local supermarkets, triggering the anger of Australian mums.
“Some parents have to visit up to 15 different supermarkets and pharmacies before they can buy milk powder for their baby.”
The demand for milk powder recently intensified in the lead-up to Singles Day, China’s biggest shopping day of the year. It has become hard to find baby formula in many of Melbourne supermarkets such as Coles or Woolworths. Popular baby formula brands including Bellamy’s, Karicare or A2 Platinum have become particularly difficult to obtain. According to Australian news reports, some parents have to visit up to 15 different supermarkets and pharmacies before they can buy milk powder for their baby.
One furious parent reportedly was so fed up with the situation, that she snapped pictures of two women buying 50 cans of A2 Platinum baby formula at a Melbourne supermarket, and uploaded them to Facebook. “My blood was boiling for the mothers having problems finding A2 for their babies. I was feeling sensitive because I’ve got a newborn,” the woman told Fairfax Media.

The pictures sparked heated discussions on Facebook (comment screenshots by Esposito & Fu, 2015).



As Chinese media reported on the issue, the shortage of baby formula in Australia also became a much-discussed topic on Sina Weibo under the hashtag of “Australian Milk powder Shortage” (#澳洲奶荒#) and “Australian Mums Hate Singles Day” (#澳洲妈妈最恨双11#).
“20 million babies are born in China every year, and only a quarter of them are breastfed.”
The reason that so many Chinese parents are buying baby formula from overseas dates back to the disastrous melamine poisoning cases that affected 300,000 Chinese babies in 2008. Many Chinese no longer trust Chinese manufactured milk powder. They therefore look to buy “clean and green” baby formula from countries such as Australia, The Netherlands, New Zealand or Hong Kong. Richer parents are willing to pay as much as five times the retail price for a tin of baby formula. For those who do not have the money, however, made-in-China formula is the only option.
With 20 million babies born in China every year, and only a quarter of them being breastfed, the demand for baby formula is growing rapidly.
Supermarkets and pharmacies in The Netherlands have already limited individual sales of baby formula: every customer can now only purchase one pack of baby formula from brands such as Nutrilon. In some Amsterdam pharmacies, an ID registration is required to purchase milk powder in order to avoid the same person buying different packs in different stores across the city. Some stores of supermarket chain Jumbo has set a rule that people can only buy milk powder if they spend at least 25 euro (±26 US$) on other groceries. It keeps unofficial exporters away.
Due to empty shelves, Nutrilon has now made it possible for Dutch citizens to order milk power online, with a limit of two packs a week.
The sales limits have made it more difficult for unofficial sellers to obtain large amounts of milk powder, making countries such as Australia a more attractive place to buy and sell baby formula.
“The penalty for unlicensed export of milk powder is up to 12 months imprisonment.”
When you search for “Australia buyers” (澳洲代购) on Taobao, Weibo or WeChat, thousands of results pop up. Chinese people living overseas make huge profits in purchasing commodities for their customers in mainland China.

Even Australian souvenir shops operated by Chinese have now turned to the ‘grey market’, with boxes of formula stacked up. While supermarkets are running out of formula, courier companies have so many parcels of formula in stock that they almost reach the roof, ready to be shipped overseas.


Australian-based Weibo netizens provide their services as ‘Australia buyers’ for customers in mainland China.
Several retailers including Woolworths and some pharmacies have now also introduced purchase limits to 2 tins of baby formula per customer.
In response to the massive import of milkpowder, the Australian Department of Agriculture and Water Resources issued an online statement this month, warning unofficial exporter that the penalty for unlicensed export of milk powder is up to 12 months imprisonment.
[learn_more caption=”Statement by the Australian Department”] “The Department of Agriculture and Water Resources understands that the community may have concerns about shortages of infant formula on Australian supermarket shelves.
The department understands supermarkets are taking measures to make sure adequate stock of infant formula are available and have been talking to their suppliers. These are commercial arrangements between retailers and the manufacturers of infant formula. The role of this department is to ensure goods exported comply with the Export Control Act 1982, meet foreign government requirements, are safe and accurately described. The penalty for failing to comply with the conditions of export orders—including exporting a prescribed dairy product without an export permit and sourcing from an unregistered establishment—is up to 12 months imprisonment. If the exporter also provides false information to an authorised officer the penalty is up to 5 years imprisonment.
Background
Exports of Australian-made infant formula to China that are over 10 kg (or 10 L liquid) must be sourced from registered export establishments and export documentation is only provided where export consignments comply with China’s requirements. that the penalty for failing to comply with the conditions of export orders—including exporting a prescribed dairy product without an export permit and sourcing from an unregistered establishment—is up to 12 months imprisonment. If the exporter also provides false information to an authorised officer the penalty is up to 5 years imprisonment. Exports of Australian-made infant formula to China that are over 10 kg (or 10 L liquid) must be sourced from registered export establishments and export documentation is only provided where export consignments comply with China’s requirements.”[/learn_more]
“The government has to think about why the majority of people have no trust in the milk produced here”
On Sina Weibo, netizen Elynpao urges Chinese to think about the issue of Australian baby formula shortage: “We have enough milk in China to supply our own people. Why should we burden such a big country [as Australia], causing them to scold Chinese businessmen for earning money like that? China should really reflect on itself.”
Another Weibo netizen named MELIFE also says that it is a shame how Chinese buy up all baby formula from Australian supermarkets and sell it to China just to earn money, leaving the local babies without any supplies.
“The government has to think about why the majority of people have no trust in the milk produced here,” another user comments. “It’s a national humilition,” another commenter says: “If a country cannot even safeguard the milk for its babies, making people go abroad for it; it’s really dreadful.”
– by Jennifer Tang
featured image: http://news.china.com.au/wp-content/uploads/2015/11/640-1059.jpeg
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edwin castelblanco
March 17, 2016 at 2:36 am
looking to start exporting powder milk to china , im in the USA any info would be a great help
steve baekelandt
December 21, 2016 at 12:55 pm
i can provide see link https://1drv.ms/f/s!ApnJpVjUl78thkJpj7GRuo4T-OKS all nestle nan
Oliver
April 24, 2019 at 12:59 pm
New update : 1child policy is stopped… and there is a new increase of demand for Western Baby formula Brand.
the top five infant formula firms in China are all based in the U.S. and Europe, accounting for 40 percent of the market.
max
May 4, 2019 at 4:29 am
It is a Brand Market you are right