A2 supported the changes to take effect in early 2018 and was confident of meeting them.
“There are quality issues in the market and a vast number of brands there so this is the right thing to do,” Wotherspoon said.
The number of brands was very confusing for consumers and the new regulations would change that.
The changes were complex but A2 was now a brand with scale and was working with the right partners.
It would be watching the progress of the new regulations carefully.
Wotherspoon made the comments at the Synlait Milk manufacturing plant in central Canterbury where he was leading a group of A2 sales and marketing staff from the Shanghai office in China.
Synlait made all the A2 Platinum infant formula brand sold in China.
Separately, Synlait said in its latest earnings report it was well-positioned for the new regulations, with a fully accredited laboratory, research and development function, technical capability for recipe development, quality standards meeting Chinese requirements and distinct brands for customers.
It was also working through its strategy with infant formula customers exporting into China, including A2 Milk Co, United States company Munchkin and several others.
It could register up to three brands for a five-year period under the new regulations.
The limit meant it would not be able to register all brands of canned infant formula it made but Synlait was expecting the volumes it could supply to grow and also intended to work with the other brands through third-party arrangements where that was possible.
The process of implementing the new regulation was expected to reduce Chinese growth to a modest level in 2017 but increasing significantly in 2018.
