Titanium Feedstock Import Volume Surges in China in March 2012

In March 2012, China set a new record in the import volume of titanium feedstock (including titanium ores and concentrates). The titanium feedstock import volume jumped to 430,403 tonnes in March, mainly due to the surges in the import volume of titanium feedstock from Australia and Vietnam. Meanwhile, the average import price of titanium feedstock rebounded again, reaching USD328/t in March 2012, according to CCM’s May issue of TiO2 China Monthly Report.

Compared with March 2011, China's titanium feedstock import volume increased by 80.6% in March 2012, and the average import price of titanium feedstock soared by 101.1% during this period. The demand for titanium feedstock seemed to recover in China in March 2012, reflected by 74.3% increase in import volume and 20.0% increase in import price compared with those in Feb. 2012.

 

It is well known that titanium feedstock supply has been the primary concern of TiO2 producers in China, due to the insufficient supply from domestic titanium feedstock producers and the constrained supply from foreign suppliers.

Meanwhile, global titanium feedstock suppliers proactively increase prices, exerting more pressure on China's TiO2 producers.

Speaking of titanium feedstock import origins, the top three were still Vietnam, Australia and India in March 2012. The titanium feedstock import volume from these three origins totaled 361,171 tonnes in March 2012, increasing by 211.9% compared with that in March 2011.

 

Compared with March 2011, the import volume from Australia and Vietnam separately increased by 374.2% and 139.9%, while the import volume from India decreased by 27.1% in March 2012. The average import prices of titanium feedstock from Australia, Vietnam and India in March 2012 separately increased by 65.8%, 119.1% and 109.4% year on year.

Besides, the resumed export from some origins including South Korea also contributed to the increase in China's total titanium feedstock import volume in March 2012.

Source: TiO2 China Monthly Report 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.html

Content of TiO2 China Monthly Report 1205:

China's TiO2 export and import situation in March 2012

Financial performance of Henan Billions and Anhui Annada in Q1 2012

Chuangda Group to restructure two Chinese TiO2 companies

Rockwood has its TiO2 business assessed for sale or IPO

Huntsman and Kronos beneifit from high price of TiO2 in Q1 2012

Lomon's large project of TiO2

Titanium feedstock import volume surges in China in March 2012

Pangang Group benefits from high price of titanium concentrate ore in Q1 2012

Coating output growing in China in Q1 2012

Dow improves the efficiency of TiO2 with EVOQUE

Plastic production value growing in China in Q1 2012

… …

TiO2 China Monthly Report, a monthly publication issued by CCM International on 25th of every month, will penetrate into Chinese TiO2 market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 industry.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1084.html

Discover Potential Business in South America Crop Protection Market

Do you want to dig more deeply into the South American market, learning more about the market trend, company dynamic, advanced technology, new policies & regulations? Where will the South America crop protection market go next and how your business can get involved in? South American market is rising, what are the potential business opportunities in this boosting market?

Crop Protection South America Monthly Report, the latest newsletter published by CCM International presents you the update information about this market. The first issue has come out recently, focusing from genetically modified crops in Argentina to overall introduction of South America pesticide industry, from GMO crops to bio-energy projects etc.

Take soybean supply for example, in March 2012, Hamburg based oilseeds analysts Oil World declared that the low soybean output would lead to the decreasing stock of soybean around the world, due to the serious drought emerged in South America. It is estimated that the stock of soybean will drop to 60.6 million tonnes in Aug. 2012, from that of 76.1 million tonnes in Aug. 2011.

Many countries in South America, the most important soybean planting area, will inevitably lower their soybean output. For instance, the soybean output of Argentina is estimated to reach 46.5 million tonnes in 2012, lower than that of 2011, 49.2 million tonnes. Compared with Argentina,

Brazil, one of the biggest soybean planting country, will have a worse damage by the bad weather, whose output will be estimated to decreased to 66.5 million tonnes in 2012, from that of 75.3 million tonnes in 2011. It is forecasted that the uncertain weather will consistently affect the grain crop planting, especially the soybean planting. Check more detail about the soybean in Argentina in the first issue of Crop Protection South America Monthly Report.

It is in big promotion now. If you subscribe during 10^th  May. 2012 to 9^th  Jun. 2012, you can get one year with 4 extra free issues. If you subscribe during 10^th  Jun. 2012 to 9^th  Jul. 2012, you can get one year with 2 extra free issues. For subscription, please feel free to contact us at econtact@cnchemicals.com.

Highlighted Headline News of the First Issue Contains:

-In recent years, South America is the fastest growing region for pesticide consumption in the world.

-Argentina remained the 3rd place in planting area of Biotech Crops In 2011, trailing only behind the US and Brazil.

-Argentina, Brazil, China, Indian South Africa led GMO(genetically modified organism) growth during 2011.

-Peru approved the ban on GMO crops once again, expressing its determination to protect biodiversity within its region.

-The Stockton Group's biofungicide, Timorex Gold, recently receives registration in Chile for the use in grapes and sugar beets.

-The Argentinean team UNL-CONICET & Bioceres recently received approval for tolerance to drought and salinity.

-Syngenta vigorously develops its GMO business by launching triple stack corns in Argentina and researching sunflower technologies.

-Monsanto announced strong results in South America Region. driven primarily by expanding business in Brazil and Argentina.

-Giant grain processors and traders' investments in Brazil Agriculture aligned to their growing strategies.

… …

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1083.html

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Email: econtact@cnchemicals.com
Tel: 86-20-37616606

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_1082.html

ChemChina to Integrate Its Pesticide Asset

Hubei Sanonda Co., Ltd. (Hubei Sanonda), a subsidiary of the leading pesticide company in China, ChemChina, released a reorganization plan on 5 May 2012 that ChemChina will inject its two other pesticide subsidiaries into Hubei Sanonda, which is the first step for ChemChina to integrate its numerous pesticide asset. The share price of Hubei Sanonda increased by 10% on 5 May, hitting the daily increase limit, according to CCM’s May issue of AgriChina Investor.

According to the plan released by Hubei Sanonda, it will acquire 80.93% and 70% equities of two other pesticide subsidiaries of ChemChina, namely Jiangsu Anpon Electrochemical Co., Ltd. (Jiangsu Anpon) and Jiangsu Huaihe Chemicals Co., Ltd. (Jiangsu Huaihe), by issuing 131.96 million shares to ChemChina, with the share price of USD0.86/share. Besides, Hubei Sanonda also plans to issue 43.99 million shares to no more than ten particular investors, raising USD37.75 million. The fund raised will be used for the reorganization and to supplement the current funds.

The reorganization plan is not a surprise to domestic investors. There have been rumors that ChemChina planned to integrate its pesticide asset for a long time. ChemChina has taken over some leading pesticide companies in recent years. After gaining 60% stakes of Makhteshim Agan, a leading generic pesticide player in the world, in 2011, ChemChina has become the biggest pesticide company in China and the sixth largest pesticide company in the world.

However, insiders reveal that these companies are operated independently. Though the previous acquisitions haven't achieved the intended target of ChemChina, the integration of these pesticide assets is inevitable.

"The reorganization will benefit the development of the listed company (Hubei Sanonda). It will also increase the profitability and integrate the pesticide business of ChemChina. After the reorganization, the competition among ChemChina's subsidiaries will be reduced. Besides, the asset size of Hubei Sanonda will be greatly enlarged and the risks will be dispersed." According to the reorganization plan released by Hubei Sanonda.

After the reorganization, the sales revenue and product portfolio of Hubei Sanonda will be greatly increased. Hubei Sanonda's sales revenue may exceed USD790 million (RMB5 billion) in 2012 and the company will change from a fertilizer and pesticide company to a company covering raw materials, pesticide intermediates, pesticides and fine chemicals.

The sales revenue and net profit of Jiangsu Anpon are USD277 million and USD8.12 million respectively in 2011. Its business covers chlor-alkali, fine chemicals and pesticides. The major pesticides of Jiangsu Anpon include ethephon and pymetrozine. It is a leading ethephon producer in China and its pymetrozine is very famous in domestic market. The sales revenue and net profit of Jiangsu Huaihe are USD191 million and USD2.41 million respectively in 2011. Its major products are nitrotoluene and 2-toluidine. The sales revenue and net profit of Hubei Sanonda are USD300 million and USD12 million in 2011.

Source: AgriChina Investor 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.html

Content of AgriChina Investor 1205:

ChemChina to integrate its pesticide asset

Huangshanghuang Food to land on Shenzhen SME Board

Mengniu Dairy to enter Hunan's dairy industry

Tony's Farm: attractive to local governments

China enhances food security by urban modern agriculture

China developing woody oil plants to reduce soybean import

Planting cost increases sharply in 2012

Raw material supply for sugar falls short of its demand

Pilot project of input VAT deduction on processed agricultural products to be launched

Fujian provincial government to support facility agriculture

Draft Proposal on Agricultural Insurance Regulations launched

Promising forestry property right investment in China

……

AgriChina Investor, periodically published on 25^th every month, offers timely update and close follow up of agriculture investment in China, analyzing market data and trends, as well as related policies. Major columns include investment environment, investment dynamics, market watcher, market review etc.

If you are interested in AgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1085.html

Average Price of Anhydrous Hydrogen Fluoride Remains Low in China

Domestic average price of AHF was about USD1,253/t in April 2012, down 2.93% month on month. Actually, its price has been decreasing continuously for eleven months since June 2011 when its price was USD1851/t, according to CCM’s May Issue of China Fluoride Materials Monthly Report.

There was three reasons contributed to the price decrease. First, the price of fluorite, a key material of AHF, decreased after July 2011 and fluctuated from USD310/t to USD360/t during the end of 2011 till April 2012. Second, affected by the fatigued market of downstream products, especially the fluoride refrigerants and fluoropolymers, the demand and consumption of AHF declined after the second half of 2011. Third, domestic AHF witnessed oversupply currently, and thus manufacturers of AHF competed with each other intensely.

 

In a word, the previous boom of fluoride industry has been calm down. There was a policy, A notice about adopting comprehensive measures on the control over mining and production of refractory clay and fluoride, issued by General Office of the State Council on Jan. 2, 2010, restricting Chinese fluorite mining volume and causing speculation in fluoride industry which leads to price increase of all products. At the same time, great demand from domestic and oversea markets for fluoride products also brings about price increase. However, the previous boom of fluoride industry seems to have vanished. The prices of the main downstream products for AHF such as aluminum fluoride, R22(Difluorochloromethane), PTFE(Polytetrafluoro ethylene) and R134a(1,1,1,2-Tetrafluoroethane), remain low and some of their manufacturers were bearish on the market.

Forecast shows that if there is without any new supportive factors and merely depends on the weak demand of current market, the future price of AHF will not raise in the next two months.

The average price of fluorite was about USD343/t in April 2012, up 0.93% month on month.

The average price of HCFC-22 was about USD1,987/t in April 2012, down 6.45% month on month.

The sagging demand of HCFC-22, one of the largest consumption of AHF, affects the most on the price decrease of AHF. According to the seasonal peak demand of fluoride refrigerants, the price of HCFC-22 should have been raising after March 2012, but actually the price was decreasing. The unexpected price decrease makes fluoride refrigerant manufacturers reduce their production-operating rate and their raw material purchase of AHF. In conclusion, lower demand of HCFC-22 directly leads to the lower price of AHF.

The average price of HFC-134a was about USD6,905/t in April 2012, down 0.25% month on month.

The previous rebounded price of HFC-134a seems to be sagging again. The price of HFC-134a had a little increase from Dec. 2011 to March 2012, mainly due to the price increase of trichloroethylene, another raw material of HFC-134a, in the recent few months. However, the market of HFC-134a is still not so optimistic and thus will not help AHF price to recover.

The average price of PTFE dispersion resin was about USD19,607/t in April 2012, down 6.53% month on month.

Generally speaking, AHF lacks supportive factors for its price now, so its price will probably keep low in the next two months.

Source: China Fluoride Materials Monthly Report 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_241.html

Main content of China Fluoride Materials Monthly Report 1205:

Yinyi Mining in the process of fluorite resources intergration

Hubei Xingfa to develop comprehensive utilization of phosphate ore

Sinochem Lantian expands its HFC-125 production capacity

Shanghai 3F and its subsidiary plan to purchase 70% share of Jiangsu Zhongrun

Dongyangguang Fluorine invests on HFC-32 and HFC-125 with 20,000t/a respectively

Lee & Man's 50,000t/a AHF production lines start to construct

Average price of anhydrous hydrogen fluoride remains low in China

Kureha to construct 5,000t/a PVDF production line in June 2012 

Meilan's application for HCFC-142b as raw material for 3,000t/a PVDF has been approved by FECO 

China realizes PCTFE large-scale production

BYD extends its lithium-ion battery industry chain toward upstream

Import and Export analysis of fluoride chemicals in China in March 2012

China Fluoride Materials Monthly Report, a monthly publication issued by CCM International on 20th of every month, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. It will help you follow the dynamic throughout the whole value chain immediately.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1078.html

China Takes Restriction on Paraquat

CCM International have published the May Issue of Herbicides China News recently, focusing on paraquat restriction. Regarding whether paraquat will be restricted in China, on April 24, 2012, three Chinese governmental departments including the Ministry of Agriculture (MOA), Ministry of Industry and Information Technology (MIIT) and General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) jointly released an official announcement in response, that all paraquat SL is demanded to be withdrawn from the whole Chinese market after July 1, 2016. Accordingly, a series of relative detailed measures are mentioned in the announcement so as to back up this decision of paraquat restriction in China:

1. From April 24, 2012, China will stop approving new manufacturers of paraquat technical and formulation, stop accepting new applications of field experiment, registration and production permits for paraquat products (covering TK, SL and mixed SL), and stop sanctioning new registrations and production permits for paraquat products (covering TK, SL and mixed SL).

2. After July 1, 2014, all current registrations and production permits of paraquat SL and mixed paraquat SL will be canceled in China, except those in paraquat TK manufacturers for paraquat export to overseas market. And all products of paraquat SL are forbidden to sell and apply in China after July 1, 2016.

3. Rechecking all product labels and modifying all registrations and production permits according to the new standard. In detail, new standard demands that paraquat label should additionally include some key information such as first aid hotline and caution, and all registrations should additionally cover relative information of technical manufacturers such as manufacturer name. Thus, the unqualified new paraquat in label, registration or production permit is forbidden to come into the market after Jan. 1, 2013, and old paraquat registrations and production permits will also be canceled in the meantime. As to current paraquat products with old labels can be sold only before Dec. 31, 2013.

4. Current paraquat manufacturers in China must produce eligible paraquat products, which should be compounded with emetic, odor agents, colorant and so forth.

5. Paraquat manufacturers in China should enhance after-sale services including application instruction and first aid of poisoning. A series of protection methods in package such as thin bottleneck of paraquat bottle and medical active carbon are encouraged.

It can be observed that the restriction on paraquat of Chinese government was triggered directly by the suggestion from chemical experts of UN that paraquat dichlorid should be subject to the Prior Informed Consent (PIC) Procedure of The Rotterdam Convention, which was mentioned in March 2011. And this suggestion has already witnessed examination from Evaluation Committee of The Rotterdam Convention, and will be checked by the conference of contracting party in 2013. It means that paraquat will probably face the risk of being listed into PIC, which will impact on the circulation of paraquat in the world. (Herbicides China News 1109: Worries about paraquat aroused in China)

Coupled with the examination process in The Rotterdam Convention, China decided to restrict paraquat in domestic market, also considering its fatal poisoning trait as well as the future industrial development direction. As expected by Chinese government these years, pesticide market in China should be healthy, sustainable and people-oriented, rather than of overcapacity, stiff competitiveness and severe homogenization.

In the respect of industrial development in Chinese paraquat market, the restriction on paraquat in China will push the industrial integration to some degree, which is managed by the government currently in order to tackle overcapacity and severe homogenization in domestic pesticide market. In detail, weak small paraquat manufacturers who only aim at domestic market will be washed out, and the leading paraquat enterprises whose targets cover overseas market can stay to enjoy a potential easy circumstance. In other words, the future paraquat production in China is expected to centralize in strong paraquat players who own self-exported capacity, and the excess or weak paraquat capacity in China will be cut off in the meantime. It will be a good prospect for current Chinese paraquat industry, but the large Chinese market will also be shocked by paraquat restriction in the meantime.

In terms of current domestic paraquat market where paraquat LS is the major product category, the restriction on SL will make a large market gap if the proper substitutes can't appear in time. As a non-selective herbicide with so many years' promotion, paraquat has witnessed fast development in the past decades in China, and has been playing an increasingly important role in weed control of orchards, corn fields, no-tillage fields and mulberry fields. In accordance with CCM International's survey, the output of China's paraquat formulations has grown very fast from more than 40,000 tonnes in 2006 to nearly 80,000 tonnes in 2010, with the average annual growth rate of 20%, which is mainly attributed to the rapid growth of domestic and overseas demand for paraquat during this period.

Even though liquid paraquat formulation can be changed to non-liquid paraquat formulation, such as solid paraquat or powder-like paraquat, which haven't been listed into Chinese governmental restriction, the objective truth is that it will take lots of financial and human resources to develop the alternative formulations of paraquat in China and it will also take a long cycle to meet the outcome.

Of course, in a broader scope, other herbicides such as diquat also can be considered as substitutes. However, in consideration of characteristics about efficiency, residue, application cost and so forth, it seems that paraquat is the best of all contact-killing herbicides for the time being.

As to those potential survivors in Chinese paraquat revolution, they will also encounter large challenges in exploration of overseas market because frequent trade frictions and potential influence of The Rotterdam Convention will repress paraquat export further in a manner compared with the situation in the past. In fact, in the world, some countries such as Sweden, Denmark, Hungary and so forth are resistant to the paraquat application very much. Such resistance may upgrade if paraquat dichlorid is listed into PIC, and further impact on other original paraquat importers' decisions in the future trade.

At any rate, facing the restriction on paraquat in China, what paraquat players need to do at present is the timely strategic adjustment or effective product research. In fact, it can be said that the governmental restriction on paraquat in China is helpful indirectly for those aggressive enterprises with strong competitiveness.

(CCM International has already taken an interview about paraquat restriction in China with Syngenta, the largest paraquat manufacturer in the world. In the interview, Syngenta expressed its exclusive viewpoints. Please pay closely attention to the next issue of Herbicides China News)

Source: Herbicides China News 1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1205:

ChemChina runs asset reorganization in Sanonda

Asset exchange proceeds in Shandong Dacheng

Huapont invests in Wanquan Hongyu and Wanquan Kaidi

China takes restriction on paraquat

Jiangsu Huifeng promotes waste treatment

Noposion's net profit slipped by 25.24% in 2011

Jiangsu Repont prepares for relocation

Bispyribac-sodium registrations increase in Q1 2012

CS herbicides keep immature in China

Haloxyfop-R-methyl meets slow project in Jiangsu Weier

No acetochlor supplies in Shandong Zhongshi now

Good Harvest-Weien prepares glufosinate-ammonium and 2,4-D

Supply dynamics of pure pyridine in China of Q1 2012

Trifluralin meets price slip

… …

Herbicides China News, a monthly publication issued by CCM International on 15^th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1080.html

MOH Forbids the Addition of Bovine Colostrum in Infant Formula

On 16 April the Ministry of Health (MOH) issued a ruling to the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) that bovine colostrum may not be added to 1st/2nd/3rd stage infant formula. This could have a significant impact on the wider colostrum category, which includes a range of formula with colostrum (for babies/infants/adults) along with colostrum powder and colostrum supplements, namely tablets and capsules, according to CCM International’s May issue of Dairy Products China News

By way of illustration, the portfolio of leading player Biolife in China comprises:

Pure colostrum powder – for instance Biolife advertises that these products (notably established brands such as Natrapure and Peizhi/Healtheries and the newer Keymore Bovine Pure Colostrum Powder) exclude any sugar or chemical preservatives and have IgG levels exceeding 10% (10%, 15%, 20%, 25% and 35%), in line with RHB602-2005. These products can be sold in Chinese market in the future. Interestingly these products are often targeted at being given to babies, especially when many parents misunderstand them to be formula powders

Colostrum milk powder, with IgG levels under 10% (Biolife’s “golden pack” ranges under its Natrapure and Peizhi/ Healtheries brands are just 3%). These are not classified as bovine colostrum powder according to RHB602—2005, but simply as colostrum-enriched foods. It appears from the MOH’s ruling that these products can no longer be advertised as colostrum milk powder (although this point is not clear and needs further explanation from MOH)

Colostrum tablets and capsules, which Biolife advertises as functional foods (of which there are 24 approved categories locally); these clearly have IgG levels which are higher than colostrum milk powder and are mainly consumed by adults, not least because in China, many parents won’t let their children eat functional foods. However Biolife recommends its colostrum tablets and capsules for babies which do not chew their food sufficiently!

The statement from the MOH includes 3 items:

Firstly, that the production of bovine colostrum powder should be in accordance with industry standard (RHB602 -2005):so before the launch of the national standard, this industry standard will effectively be treated as such … …

Secondly, if the bovine colostrum is added to ordinary foods, it should meet the related food standards … ….

Thirdly, that formula may not include any dairy ingredients which use bovine colostrum as raw material. This requirement will be effective from 1 September, although products imported or produced before this date may still be sold up to their expiry dates … …

At present, there is no national standard for bovine colostrum products, only the industry standard RHB602-2005 for bovine colostrum powder. This was set up by the China Dairy Industry Association in 2005 with input from Biolife − there is no national standard for bovine colostrum. If a product does not meet the requirements of RHB602-2005, it is considered a functional food. According to RHB602 – 2005, pure colostrum powders should contain at least 40% protein and 10% IgG. So in theory, if the MOH is interpreted literally, many companies have to change their promotional strategies.

The ruling has been explained by some in terms of the minor local output of bovine colostrum, its variable quality and the difficulty involved in its industrial production, with further suggestions that it is unproven for use in formula.

In fact the ruling of the MOH is in accordance with the National Food Safety Standard for Raw Milk, which was issued on 26 March 2010 and implemented on 1 June 2010. According to that standard, bovine colostrum (from the first 7 days) may not be used as raw milk. This led to a lack of clarity and in line with this change, the Guangdong office of GAQSIQ stopped imports of formula powders with colostrum in August 2011 while it awaited clarification of the national standard. Subsequently a distributor from Guangdong made complaints to the press in March 2012 that its residual stocks of such products hadn’t sold out, and this story was widely reported, compelling the MOH to make a response.

It seems that the market for formula products including bovine colostrum – which has grown rapidly and is estimated at about USD317.0 million (RMB2 billion) currently – will be impacted by the official reply.

Source: Dairy Products China News  1205

http://www.cnchemicals.com/Newsletter/NewsletterDetail_22.html

Content of Dairy Products China News 1205:

Key Processors’ Strong Performance in 2011

Key Processors’ Increasing Investment in Marketing in 2011

Domestic Dairy Industry Hurt by Industrial Grade Gelatin?

Interface Protein Cuts Cheese Prices

Infant Formula Processors’ Results Signal Mixed Fortunes

New Standard for Food Fortification Ingredients

MOH Forbids the Addition of Bovine Colostrum in Infant Formula

Nestlé + Wyeth: A New Giant in China’s Infant Formula Market

Bright Dairy Builds Up its Yoghurt Business in Southern China

Henan Government Promotes Local Milk Production

Greatview Packaging Enjoys Good Development in 2011

Taizinai Group Launches New Products

Dairy Products China News, a monthly publication issued by CCM International on the 30th/31st of every month, brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.

About CCM International

CCM International is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM International offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

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