CCM: Another Australia Dairy Enterprise Suspended in Registration in China, China Again to Strengthen Supervision on Imported Infant Formula 11-15-2016 175

Guangzhou, China, November 18, 2016 (Newswire.com) - ​​One more Australian infant formula enterprise with over 100-year history has been suspended in its registration in China. It is once again a sign of the Chinese government to strengthen supervision on overseas imported infant formula, according to analyst CCM.

According to the latest list of Australian infant formula enterprises registered in China released by China’s Certification and Accreditation Administration (CNCA), the Viplus Dairy Pty Ltd. (Viplus Dairy) is suspended for its registration in China since Nov. 4. In fact, Viplus Dairy is already the second dairy enterprise that gets suspended in China in this year (2016).

Based on the list, Viplus Dairy registered for its infant formula milk powder in China. That’s to say, the suspension this time has disqualified Viplus Dairy to sell its infant formula milk powder in China.

Several brands under Viplus Dairy in China

Founded in 1893, Viplus Dairy is located in South Gippsland, Australia. With over 120-year history, Viplus Dairy is one of the earliest dairy enterprises to produce and develop infant formula milk powder in Australia.

There are several brands under Viplus Dairy selling in China currently, including Viplus, Anbolac, Optimum, Olibaby, My Cravings and etc. A staff from Viplus (China) Dairy Co. Ltd., Viplus Dairy general agent in China, disclosed that Viplus Dairy still had no idea about the suspension on its registration in China. They received no related notice and would verify on the suspension.

Unqualified products or unqualified dairy enterprises may lead to registration suspension in China

In fact, earlier in June 2016, China’s general Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) had an publication on its inspection on imported food in China from Jan.- May 2016 and announced that the 3.8 tonnes of infant formula milk powder produced and imported by Viplus Dairy was unqualified for its labels.

Song Liang, senior dairy analyst in China, disclosed to CCM that, several reasons could cause registration suspensions in China, such as unqualified products found in inspection during customs declaration; irregular certifications of the dairy enterprises; irregular market circulation; and food safety problems.

Strengthen on supervision on imported dairy products

Since the melamine milk powder scandal happened in China in 2008, China has a strong demand for imported milk powder. In order to better manage on the imported milk powder, AQSIQ released the Notice on Strengthening Management on Imported Infant Formula Milk Power (Notice): since May 1 2014, infant formula milk powder from overseas dairy enterprises which don’t register in China cannot be imported to China.

According to the Notice, overseas dairy enterprises are allowed to register in China only after its source, production, storage, transportation and etc. pass the inspection by AQSIQ.

“If there is no special occasion or warning, the infant formula which are imported before the registration suspension are still able to sell in China. However, the subsequent infant formulas are suspended in importing. If the suspension period lasts too long, the dairy brands will be hugely affected in sales in China,” stated Song.

In fact, Viplus Dairy is already the second Australia dairy enterprise to be suspended in registration in China in 2016.

In Sep. 2016, Camperdown Dairy Company Pty Ltd. (Camperdown Dairy), another Australia dairy enterprise, was also disqualified in its registration in China.

Camperdown Dairy is also an old dairy enterprise with 125 years history. Its import products to China include fresh milk, fermented milk, fermented flavor milk, butter, cream and etc.

However, in Aug. 30, CNCA announced that staphylococcus aureus and colibacillus were detected exceeded in fresh milk produced and imported from Camperdown Dairy.

It is at the same time that CNCA announced to entirely strengthen supervision on Australia dairy enterprises.

In order to assess and control the risks during production and transportation of Australian fresh milk, the CNCA also required local government departments and the 41 registered fresh milk companies to submit related technology certificates within a certain period; the CNCA will organise experts to conduct technological examinations to keep the registrants up to speed on this.

This stepping up of supervision will raise uncertainty in the Australian industry, for which China is the largest export destination. In 2010-2015, the volume of this trade rose at a CAGR of 29.8%. In 2015/16 it reached 88,900 tonnes (= USD186.6 million OR AUD245.8 million); so far 188 dairy plants in Australia have been registered in China, including 8 infant formula producers.

Australia or even the overseas dairy enterprises should better prepare themselves to get their dairy products imported to China’s market.

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Source: CCM