Saturday, April 20, 2024

NZ infant formula makers likely to get all-clear from China

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Nearly all New Zealand’s 13 infant formula manufacturers look likely to pass muster by Chinese authorities to continue exporting to China, which has introduced tough new regulations after food-safety scares.
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Primary Industries Minister Nathan Guy and Food Safety Minister Nikki Kay said based on advice from Chinese officials in the past 24 hours following their audits of NZ manufacturers, most, if not all, were expected to achieve registration.

However, one unnamed manufacturer would have to make some changes before registration would be complete, the ministers said.

The Chinese audit was conducted last month.

Retail-ready infant formula represents about 4% of NZ’s dairy exports to China, worth about $200 million a year.

The new regulations, which come on the heels of last year’s false botulism scare involving infant formula made with whey product by Fonterra, will apply to all countries from May 1.

However, the ministers said the new rules, alongside strict regulations for China’s domestic producers, were part of long-planned change to China’s regulatory framework for the manufacture and import of baby formula.

About 90% of NZ’s infant formula exports were controlled by manufacturers, who were working through the registration process, the ministers said.

For the other 10% of infant formula exports, the changes required would be more complex, they said.

“Chinese officials have made it clear that they will require a close association between the brand owner and the manufacturer.

“Yesterday they formally advised that in practice that means the brand owner having clear control over the manufacturing process and the product formulation for their brand.

“This will impact on those brand owners who are unable to prove that close association. MPI will work with those brand owners to advise them of options that could bring their brands into line with the new regulations.

“However, the new requirements will have a very significant impact on those exporters that are unable to demonstrate a close association.

“Our embassy in Beijing is seeking transition arrangements to help those brand owners who need to make significant changes.

“We know that all infant formula produced after 1 May 2014 for export to China, from any country, will need to meet the same requirements. NZ agencies including MPI, NZTE and MFAT will continue to work closely with all NZ exporters to meet the new regulations.

“MPI is sending a senior official to Beijing in the next few days to assist in the transition process.”

Fonterra chairman John Wilson has confirmed whey-based Fonterra products are still being delayed at the Chinese border, nearly eight months after the false botulism scare that sparked extensive infant formula product recalls in Asia and NZ in August last year.

But he said the heightened level of inspection by Chinese border officials of Fonterra whey products was not causing undue problems and the delays should be resolved soon, thanks to good dialogue between the officials and Fonterra staff.   

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