According
to Dairy Products China News issued by
CCM in November 2013, In
order to support the work of central government in promoting the safety and
quality of infant formula, on 27 September, China’s Administration for Quality
Supervision and Inspection and Quarantine (AQSIQ) issued a notice −
Strengthening Supervision of Imported Infant Formula. Requirements for imported
infant formula are announced as follows:
•
Foreign infant formula processors exporting to China are required to register
locally in line with the Administrative Measures for Import and Export Dairy
Products’ Inspection, Quarantine and Supervision (please see Dairy Products China
News, Vol.6 March issue, p7) and Administrative Regulation of
Register for Foreign Food Producers Exporting to China. Unregistered foreign
infant formula processors will be prohibited from exporting to China from 1
May, 2014.
•
The imported infant formula’s shelf life must be more than 3 months from the
date of inspection
•
Imported infant formula must be pre-packaged for retail to avoid repacking and
redistribution
•
From 1 April 2014, imported infant formula packs must have pre-printed Chinese
labels. Any such formula without Chinese labels or with labels that fail to
meet Chinese laws will be returned or destroyed
These
measures can be seen as part of the wider change governmental direction in
several aspects:
•
Increasing supervision by government and society, with emphasis on dairy
enterprises showing self-discipline. The consistent theme of the governmental
policies and regulations is to increase supervision and to encourage consumers
to participate in this process. Alongside this the government has also
established an enterprise credit system, aiming to make food enterprises more
transparent and hence more disciplined in their operations − especially the
infant formula manufacturers
•
Stricter and more detailed standards for infant formula products and
manufacturers. Compared with the previous versions, the latest standards for
infant formula products and their manufacturers are stricter and more specific,
providing more details and practical measures for the government
•
Promoting the restructuring of the industry. The government has taken many
actions to promote this, the latest report about restructuring the country’s
infant formula production being just one of these
•
Supporting the domestic industry. The government has taken actions such as
strengthening supervision of import/export trade in dairy products, online
sales of dairy products, and the anti-monopoly investigation. It is clear that
the main beneficiaries of such efforts will be the leading domestic dairy
companies
A
number of the impacts from the changed governmental direction may be summarized
as follows:
•
Improved consumer confidence and demand. Undoubtedly, the governmental moves
have gone some way to rebuild consumer confidence, thus boosting demand.
•
Increasing dairy imports of dairy ingredients. Stronger demand and some of the
changes in local milk supply have led to increasing demand for imported dairy
ingredients and some finished products, a trend which will last for the
foreseeable future.
•
Fiercer competition. The increased focus on restructuring the industry – and
especially the 128 local infant formula manufacturers – has combined with more
and more domestic and multinational players entering the market to make
competition still more intense, especially amongst domestic companies.
•
More cooperation. The fiercer competition will also facilitate greater
cooperation between domestic and multinational companies as they position
themselves for a rationalized industry in the future.
•
Price. Two main pricing trends are evident, as premium products are priced ever
higher whilst mid-market and low-end products remain relatively stable.
Overall, though, price levels will increase due to the increasing costs caused
by the stricter standards and the impact this has on the raw materials used.
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Dairy Products China
News,
a monthly publication issued by CCM on 15th, offers you the latest information
on new market dynamics, company development, new products, technology,
packaging and raw material supply, etc. It also focuses on the government’s
direction and polices, helping you get the whole picture of the industry.
CCM is dedicated to market research in China
Guangzhou
CCM Information Science & Technology Co., Ltd.
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