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 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
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/
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)
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