Regulation changes governing China’s infant formula industry come into force on 1 May 2014, aimed at lifting the quality standards required of manufacturers supplying that market.
Synlait Milk has been fully engaged in the process, choosing to position the Company around CNCA’s desire for international manufacturers exporting infant formula product to China to have committed milk supply, wet blending and spray drying, dry blending and consumer packaging on site.
Synlait Milk has also been working with its three brand partners Bright Dairy & Food Co, Ltd., New Hope Nutritional Foods Co., Ltd and The a2 Milk Company in anticipation Chinese officials would require a close association between the brand owner and the manufacturer.
Synlait Milk is now part of a group of New Zealand dairy manufacturing companies working through a process to achieve registration.
Synlait Milk’s recent interim report outlined the regulation changes were likely to result in a short term reduction on sales of finished infant formula and nutritional products into China, however it expects long term objectives to be achieved.
China is an important market for Synlait Milk with its finished infant formula business expected to be a significant earner in future.
Synlait Milk continues to work with its first tier multinational customers for the supply of infant formula ingredients and finished products outside of China.
