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MACHINERY & PRODUCTS
New breeding index aims to beef up NZ genetics. PAGE 10
Second generation Amarok ups the stakes. PAGE 21
ANIMAL HEALTH NAIT campaign for Mid Canterbury. PAGE 20
TO ALL FARMERS, FOR ALL FARMERS MAY 23, 2023: ISSUE 776
www.ruralnews.co.nz
Infant formula ‘doomed’! SUDESH KISSUN sudeshk@ruralnews.co.nz
THE ONCE-LUCRATIVE Chinese infant formula market is shrinking. Three factors – China’s negative population growth, economic downturn, and a more stringent regulatory environment – are driving down sales of infant formula. New Zealand infant formula exports to China topped nearly $1 billion in 2021, according to the Ministry for Primary Industries (MPI). How-
ever, sales dropped last year to around $806m. Sales could be even lower in 2023 as NZ companies await China’s State Administration of Market Regulation (SAMR) registration which allows them to export branded infant formula to China. Consultant Jane Li of Li, Page & Company believes the heydays of infant formula sales in China are over. “It’s very doomed, the infant formula pie is shrinking,” she told Rural News. “There are less babies being born in China.”
At the same time, the Chinese economy hasn’t recovered to the pre-Covid days, she adds. “Remember China had some of the harshest lockdowns in the world over the past three years.” Li believes the new regulations around infant formula is the Chinese Government’s attempt to appease consumers after the melamine scandal in 2008 and gain political trust. She says the new regulations are aimed at reducing the number of baby formula products.
Cream of the crop Equity partners in a Taranaki dairy farm, Hayden and Bridget Goble scooped the 2023 New Zealand Share Farmer of the Year in Auckland this month. Judges described them as a power couple who are driven, genuine and focused dairy farmers. Hayden graduated from Telford in 2005 with a Diploma in Agriculture and enjoys the combination of running a business while securing his family’s future. Bridget is a doctor, with a specialty in emergency medicine. The couple are 20% VO equity partners on a 200ha, 565-cow New Plymouth property. Full story on the awards, page 5.
She believes the new regulations will only make it viable for major domestic players and multi nationals to play in China. But Li believes Fonterra has nothing to worry about, as the co-operative’s food service and ingredients businesses in China are booming. “Chinese consumers are spending less on luxurious clothes and cosmetics and more on leisure food and Fonterra products are popular in the food service sector,” she says. Fonterra sells Anmum branded
Infant Formula and Materna nutrition in China, as well as ingredients to other brand owners who sell in the China market. The co-operative says it is progressing through the China re-registration process, along with others in the industry. “Infant Formula makes up a relatively small part of Fonterra’s broader China business. “Our China Food Service and Ingredient businesses are performing well,” it told Rural News. MPI’s Deputy Director-General, New Zealand Food Safety, Vincent Arbuckle says MPI is working closely with New Zealand companies on the China infant formula product registration process and is committed to helping ensure it continues to run as efficiently as possible. So far this year, three New Zealand infant formula companies have had their products registered by SAMR. China announced strict controls on infant formula composition as part of its new GB (food safety) legislation standards two years ago. The new rules kicked in from February this year. Re-registration of the product is required. The on-site verification audit is the last step in the re-registration process before requesting final approval by SAMR. MPI’s Vince Arbuckle told Rural News it has been working closely with New Zealand infant formula manufacturers over the last two years to ensure they are aware of China’s product registration requirements and standards, and the timelines involved.
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