After 1 Year Camperdown’s Second Registered Dairy Plant was Suspended in China

放大字体  缩小字体 Date:08 Jul 2017  Source:Foodmate  Writer:Liu Rong  Views:67
On July 6th 2017, CNCA updated the Registration List of Australian dairy plant. Camperdown Powder Pty Ltd (registration number 1179 by CNCA) was suspended in China since July 6th, 2017, which indicates that both infant formula products and other dairy products (whole milk powder, partly skimmed milk powder, skimmed milk powder, ect.) are not allowed to be exported to China.

Till now, there are no official reasons published. According to a Chinese expert in dairy industry Song Liang, “The reason is that actual production conditions, equipment and production environment of Camperdown Powder Pty Ltd plant cannot meet the regulatory requirements of China”

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Original link: http://www.cnca.gov.cn/ywzl/gjgnhz/jkzl/importslist/milk/Australia20170706.pdf

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Original link:http://www.cnca.gov.cn/ywzl/gjgnhz/jkzl/importslist/dairy/Australia20170706.pdf
Looking back history of Camperdown in China, on December 2016, CNCA published in its official website that several batches of UHT milk from Camperdown Dairy company Pty Ltd (CNCA registration number 1586, same group company with Camperdown Powder Pty Ltd)were detected, results showed that Staphylococcus aureus, Escherichia coli exceeded the Chinese related standard.

In order to reduce consumers 'skepticism and fears about its infant formula products from Camperdown Powder Pty Ltd , Gavin Evans, CEO of Camperdown Dairy International(CDI)and Camperdown Powder issued an official statement in 2016, that these two plants were different independent plants.

Infant formula registration regulation impact on Australian formula companies


In 2016 Chinese CFDA has published infant formula registration regulation, according to the regulation, all the imported infant and young child formula products selling in China shall acquire the registration certificate issued by CFDA before Jan. 1st 2018. Each infant and young child formula plant can apply at most 3 series (each series includes 3 products). First of all, registering with CNCA is the prerequisite for the infant formula registration in China. Therefore, lots of companies either infant formula distributors or Chinese local companies are betting their future on get an oversea CNCA registered infant formula manufacture. Just provide the following 8 registered plants in Australia:

1.Camperdown Powder Pty Ltd: was acquired by Bellamy in Jun 13th 2017, a top seller in Australian oversea shopping, organic milk powder company, which costs 28 million 500 thousand Australian dollars.

2.VIPLUS DAIRY PTY LTD :
is an affiliated company of Chinese company 兆辉 group.

3.SPHERE HEALTHCARE (ASIA) PTY LTD: announced a new base investor injection of $11 million in investment in 2013, but did not disclose its investor name.

4.FARMLAND DAIRY PTY LTD:in March 2016, Primavita Dairy (Beijing) Limited announced that after acquisition of Australia's Farmland Dairy 44% stake, it had continue to increase the form of shares held to 51%.

5.AUSTRALIAN DAIRY PARK PTY LTD:
in 22nd May 2017, Ausnutria announced that through Australia's wholly-owned subsidiary of Ausnutrition Care , Ausnutria reached an shareholders agreement with Australian Dairy Park Pty Ltd(ADP) , that Ausnutria takes 23 million 300 thousand Australian dollars to acquire 100% stake of ADP company

6.TATURA MILK INDUSTRIES LIMITED:in 28th February 2017,Mead Johnson announced that it has get acquisition agreement with the Australian dairy company (Bega Cheese)

7.MURRAY GOULBURN COOPERATIVE CO LIMITED:owned by The largest dairy processors Maigao (Murray Goulburn)

8.BLEND AND PACK PTY LTD:In 4thJuly 2017, Mason Food (affiliated company of Mason Financial Holdings Limited) announced to acquire 75% issued share capital of BLEND AND PACK PTY LTD

Since formula registration will reshuffle Chinese infant formula market very soon, both domestic and oversea infant formula manufactures are busy in catching the deadline (Jan 1st 2018), all of them are eager to be the first runners in the attractive market.

On the other hand, lots of companies expected to get their future though international acquisition just like Bellamy, according to their original intention, they can get the right to register their formula in China through the acquisition without giving up their great image already set up in China market, according to Bellamy’s evaluation production capacity of Camperdown Powder Pty Ltd can be increased to 15 thousand tons within 1 years, which can fully support Bellamy’s business in China. After July 6th Camperdown Powder Pty Ltd was suspended in China, Bellamy’s future in China will be very difficult.

Foodmate’ suggestions for oversea infant formula manufactures

There are only 5 months left for the deadline from 1st Jan 2018, Because of the complicated registration regulations, most of oversea companies facing big challenges during the process, till now about 1/5 of oversea manufactures (totally 73 approved by CNCA) have submitted their dossier in China, for the ones already submitted their registration dossiers have much higher possibility to get much rewards in the near future, since there are less competitors in the market, Chinese consumers are much preferred to imported infant formulas.

We suggest oversea manufactures strictly follow the rules when export dairy products to China, especially in this sensitive period, AQSIQ updates the unqualified list monthly, if one of your product is in the “black list”, it will sure have negative impact on your final formula registration. For formula registration dossier preparation, it is better to submit one series (3 formulas) as quickly as possible, since CFDA will take at least 6 months to issue final approval if everything goes smoothly, it is very important to set up your brands in China as first runner, meanwhile to prepare the other two series.
 

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