Bringing Australian Infant Formula to the

China Market

The Infant Nutrition Council (INC)

• ANZ infant formula industry

• Represents the whole of industry

• 7 Ordinary members, 23 Associate members

• 95% of the volume of infant formula produced

• Represents infant formula industry in all its aspects

• Ensures confidence in safety and integrity of ANZ

industry

INC Australian Members

INC is committed to supporting both

breastfeeding and infant formula

Advocates for optimal nutrition for all infants

1. breastmilk first

or, when a baby is not given breastmilk,

2. infant formula (the only suitable breast milk substitute)

Marketing practices are in accordance with the World Health Organization’s International Code of Marketing of Breast-milk Substitutes 1981 (WHO Code)

INC Code of Conduct

INC members abide by a strict code of conduct.

They work together to resolve issues relating to the

infant formula industry in Australia and New Zealand

• sets standards

• industry best practice

• successful complaints process

INC’s keys to achieving industry

best practice

1. Compliance

2. Ethical marketing

3. Supply chain integrity

4. Scientific and regulatory expertise

5. Strong industry associations

6. Strong government relations

7. Strong international relations

What are the opportunities for Australia’s

Infant Formula Industry in China?

China is vast!!

31 provinces, 653 cities, 2,856 counties

Rapid Urbanisation

• Urban population – 779,282,155: 56% of total

• 2000: 36%

• 2012 China’s middle class – 17%.

• 2022 the middle class – 63%.

Source: http://www.worldometers.info/world-population/china-population/

One child policy

China – a booming market for infant

formula

• 16 million babies born each year in China

• Lessening of the 1 child policy - 23 million

• Australia - 1 baby born every 1 minute 44 sec.

• China - 54 babies born every 1 minute 44 sec.

$10,000 USD per annum

China’s infant formula market is worth $13.3 billion and growing!

Factors Affecting Infant Formula

Purchase Decisions

Foreign product preferred: supply chain, water and pollution concerns.

China-Australia Free Trade Agreement

• The China-Australia Free Trade Agreement

(ChAFTA), 17 November 2014

• ChAFTA – foundation for economic relationship with

China

• China – Australia's largest export market

Leadership in marketing

• China and Australia signatories to the WHO Code.

• All INC members use WHO Code.

• Breast is best.

International Code of Marketing of Breast-milk Substitutes (WHO Code)

What are the challenges for Australia’s

Infant Formula Industry in China?

China Certification and Accreditation

Administration (CNCA) Registration

• High quality and safe infant formula products

• Before 1 May 2014 more than 3,000 brands.

• Since May manufacturers must be accredited

• Manufacturers must be responsible

• Number of brands in China reduced

CNCA Registration and the

Australian industry

• Many Australian manufacturers without accreditation

• Australian manufacturers accredited by CNCA:VIPlus Dairy

Tatura

Australian Dairy Park

Murray Goulburn

Blend and Pack

Sphere Healthcare

• More manufacturers will be accredited over time.

A changing landscape

• Strong partnerships

• Chinese investments in Australia

• China dairy industry

• Manufacturer responsibility – quality & safety

Magnetic milk – the lure of dairy investment down under

Rabobank - global agribusiness banking specialist

For the New Zealand and Australian dairy sectors – collectively known as Oceania –preferential market access, reputation for quality and geographical proximity are the magnetic forces supporting the investment flows into this region, and they will continue to do so.

• intense competition

• risk of oversupply in dairy markets

• uncertainty in regulation

On Australian dairy farms, cows predominantly graze naturally on lush grass pastures.

Australian Infant formula is a high quality & high valued product.

The vast and growing China market provides a great opportunity for the Australian dairy industry to increase the volume of export of our premium Infant formula products

What is at stake is the health and

safety of the world’s most vulnerable

population

www.infantnutrititoncouncil.com