There are indications that recent
sales of bovine colostrum products have been poor. This appears to be the
result of the policy – released in April by the Ministry of Health (MOH) and
effective from 1 September – which stipulated that bovine colostrum could not
be added to 1st/2nd/3rd stage infant formula (please see Dairy Products China
News, Vol.5 May issue, p9) , according to CCM’s
September issue of Dairy
Products China News.
Pure colostrum powder, tablets
and capsules are still available now and are not limited by the policy. However
it appears that, as was raised as an issue by the trade back in April, many
consumers have become concerned about products with added bovine colostrum
since the policy was released. Some distributors are indicating that sales of
bovine colostrum products decreased by nearly 90% from May to August, and some
suppliers have been streamlining their product ranges as a result.
Yet bovine colostrum infant
formula remains available, especially on e-commerce sites: whilst they are
being discounted, products imported or produced before 1 September may still be
sold up to their expiry dates. For example, Nouriz colostrum milk powder
imported from New Zealand
There is no national standard for
bovine colostrum products in China
The most popular brand of bovine
colostrum powder is Shelca among domestic consumers according to the survey; 2
New Zealand products which we have covered before in past issues fared less
well: Biolife ranked 9th favourite and 6th most familiar, and Neutrien ranked
8th and 7th respectively (please see Figure 9). Unexpectedly, Sunlife, Biolife
and By-health all achieve mediocre rankings, though they are the largest
players in the market (the former 2 import their products pre-packaged, whilst
By-health manufactures its products with imported ingredients).
Marketers typically target their
bovine colostrum products at adults, elderly consumers and older children who
need nutrition supplements, and persuade consumers to add bovine colostrum
powder to infant formula, but avoid discussion of the Government policy
wherever possible.
Impact on the infant formula
market seems minor, as this is a minor niche in the overall market. Most
domestic producers state that they will not produce such products any more;
major dairy processors avoid the category and no new bovine colostrum products
are likely to be launched until the situation is clarified. This will certainly
assist challenges to the category from other nutrition products unless the
Government moves to address the issues which have arisen about standards of
identity in this area. Meanwhile the effect has been to make the international
colostrum market difficult for suppliers – for example the market situation was
a factor in Westland Milk Products reduced colostrum collection and its lower
2012-13 payout forecast in August.
Content of Dairy Products China
High
Prices for Dairy Products
Prospects
for Pasteurised Milk
Bovine
Colostrum Products Face Challenges
Dairy
Imports Increase
Mengniu
Growth Strategy
Bright
Dairy Faces Further Scandal
Tianhong
Enters the Dairy Industry
Natural
Dairy Records Further Losses
Wahaha to
Target Overseas Investment
Modern
Dairy Performs Well in 2011 & 2012
Carrickmore
Targets Formula Market
Amway
Expands Nutrilite Business
Dairy
Products China News,
a monthly publication issued by CCM 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
CCM is dedicated to market research in China
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
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