China strictly controls overseas infant milk powder

The list of imported infant formula manufacturers approved and approved by the Chinese government finally settled in May 2014. However, several families rejoiced that some well-known and well-known brands did not appear in the final batch of 49 finalists in the latest two batches.

According to the provisions of the China Certification and Accreditation Regulatory Commission (hereinafter referred to as the “China National Certification and Accreditation Administration”), since May 1, 2014, imported dairy products overseas production enterprises have begun to implement registration management, and only after successful registration, production by overseas enterprises Dairy products can be imported into China.

The 21st Century Business Herald reporter found that in the list of losers, there are no shortages of Synlait Milk, a New Zealand-listed subsidiary of Bright Dairy (600597.SH), and Germany’s largest organic milk powder producer Xibao Company. Milk prices.

“We have submitted the materials and actively tried to go through all the processes needed for the review as quickly as possible. However, this may still be a long process, but the light will definitely require New Wright to enter the list.” Bright Dairy Director of Public Affairs Min Min told reporters in the 21st Century Business Herald.

The CNCA stated that after the first announcement of the list, it will also be updated at any time based on the progress of applications for registration by overseas dairy producers.

New Zealand: Biggest Winner Loses

New Zealand became the biggest beneficiary in the first round of the list. Among the first 41 milk powder companies, 8 are from New Zealand, of which Danone has 3: the Nutricia Limited, a producer of Kerkang, and the Shanteng Group and Gardians Limited, which have just been acquired by Danone; the next is Hengheng. Natural and its subsidiary Canpac International Limited; followed by New Zealand's second largest dairy company Westland Dairy and New Zealand's largest goat milk cooperative Karotani, and the traditional OEM GMP Dairy Limited.

Even so, local public opinion in New Zealand is still somewhat disappointed. Because in early March 2014, a team of four members of the CNCA went to New Zealand to review 13 local well-known dairy companies, including Guangming New Wright.

New Zealand’s official and local dairy industries have been optimistic that 13 New Zealand infant formula milk powder mills are expected to pass the inspection of the CNCA. New Zealand's Minister of Primary Industry Nathan Guy and New Zealand's Minister of Food Safety Nikki Kay once said: "According to Chinese officials' advice, although only one factory does not need to make changes during this inspection, other factories have to make corresponding adjustments. However, we expect that most of the 13 production plants will likely complete their registration in China."

The newly-launched New Wright Dairy Co., Ltd. said in a statement issued in May that the company is confident that it will ultimately qualify for China's registration. Although the initial list issued by China's CNCA did not include New Wright, this result was in line with the company's earlier forecast. New Zealand’s Ministry of Primary Industries has notified New Wright that the department expects that New Wright will be able to obtain registration in China once New Wright’s dry mix and packaging equipment is approved by the Ministry of Primary Industry’s risk management plan.

At present, New Wright is the sole producer of the ultra-high-end infant milk powder brand Perry Berry of Bright Dairy. The failure of the first round of audits means that Bright Dairy could not continue importing the milk powder to China after May 1.

"Perry Berry's sales in China will not be negatively affected for the time being." Min Min told this reporter. It is understood that the new Wright company has made ready preparations in advance on May 1 to ensure that the supply of milk powder can meet the needs of the medium term.

Detailed list of shortlisted

On April 30 and May 6, the National Certification and Accreditation Administration issued two batches of certification lists. The statistics of the 21st Century Business Herald found that the 49 manufacturers passed were from Ireland, Austria, Australia, Poland, Denmark, Germany, France, South Korea, the Netherlands, Spain, Singapore, New Zealand, the United Kingdom, Belgium, Switzerland, and the United States. Countries.

With the exception of New Zealand, the second-ranked country is the Netherlands, with a total of six, of which five are from well-known dairy companies such as Mead Johnson, Nestle, Merssell, Abbott and Danone.

There are five short-listed companies in France, and two of them have direct and indirect links with Biostime (01112.HK). Among them, LAITERIE is one of the suppliers of Biostime, while Isigny Sainte Mère is held 20% by Synbiotics.

Ireland has four companies on the list, namely Bein America (002570.SZ), Wyeth, Danone and Abbott’s local factories. The two finalists in Denmark are from Arla, which is Mengniu's second largest shareholder. In addition, there are two finalists in Germany, from Nestlé and Tefufen; and only Heinz is a member of the UK.

A person close to the German company Xibao told the reporter that the CNCA had already rushed to Germany and conducted field trips to major manufacturers including Xibao. However, due to the late submission of application materials by Xibao, it was accepted at the time. Did not catch the "first bus".

However, in the second batch of May 6th list, Bright New Wright and Germany's Xibao are still on the list, and the finalists are from eight milk companies in the United States, Switzerland and Belgium. Including the United States famous old factory PBM and Abbott, Mead Johnson, Nestle's US production plant.

A new round of shuffle will happen soon?

It is worth noting that Japanese milk powder manufacturers have so far failed to appear in the two rounds of the National Scrutiny Committee. Although Meiji milk powder had already withdrawn from the Chinese market, Japan’s famous powdered milk makers and Hakodate later formed strategic alliances with Master Kong. They plan to explore the Chinese market together. Once they fail to obtain certification from the CNCA, the Japanese milk powder will face import policy. risk.

An executive of an European milk powder brand believes that the Chinese government's certification action will undoubtedly raise the entry threshold for the milk powder market, for those brands that do not have a fixed foundry factory, or have ordinary factory strength and weak research and development capabilities. It is very likely that it will be washed out in this round of operations.

The CNCA made it clear that they needed a direct link between the brand manufacturer and the manufacturer, and the brand business had a clear control and management of the production process and product formulation. This new policy will have a negative impact on brands that cannot prove that they are in direct contact with producers.

"Even if the import stocks are taken before May 1, there will normally be about 2 months of stocks. If they can't get approval from the Chinese authorities, many brands will be eliminated because they are out of stock," the source said.

However, leaving the market gap will also give the finalists more opportunities. Shu Marong, the CEO of Shu Mian organic milk powder in China, is planning to launch full-scale launches in offline markets such as Guizhou, Jiangsu, Hunan, Zhejiang, Jilin and Hubei, as well as online channels such as Tmall Mall, No. 1 Store, and Suning.

Because this short-listed Austrian Arjuna Group is Shu Ma organic milk powder overseas foundry. Wang Kerong told reporters in the 21st Century Business Herald: “This registration will reshuffle the market pattern of foreign milk powder in a certain period of time, which is an excellent opportunity for the brands that can enter the first round of the list.”