July 23, 2014

New Zealand's a2 Milk approved to sell milk to China

New Zealand dairy company a2 Milk Co., which specialises in products for people with difficulties digesting milk, has got the clearance from Beijing to sell milk in China, Wall Street Journal reported.

A spokesman of a2 Milk Co said the company had enough baby-formula supplies in China to meet demand until its processing and manufacturing partner, Synlait Milk, also gains China's approval.

After the incident of Fonterra botulism scare, China banned many foreign milk brands. Fonterra gained approval to return in May this year, while New Zealand New Milk Ltd. was approved in early July. 

Besides these New Zealand companies, Nutricia Ltd., Westland Co-Operative Dairy Company Ltd., Canpac International Ltd., Gardians Ltd., Sutton Group Ltd., Dairy Goat Co-Operative (N.Z.) Ltd. and GMP Dairy Ltd have regained market access as well.

On May 1, China imposed new rules that require offshore infant-formula makers to register with Chinese regulators first before being allowed to export products to the country. The rules also require any company exporting baby formula to ensure complete control over the entire manufacturing process.