New regulations or new wave of milk prices

The "Administrative Measures on Inspection and Quarantine of Imported and Exported Dairy Products" from May 1 will be formally implemented. As the new regulations will be added "importer approved self-test", "Immigration needs through the risk assessment, and in line with China's national food safety standards" and other content, the industry has been evaluated as "the history of the strictest dairy import regulations."

Some people in the industry reported to the Yangcheng Evening News reporter that the new regulations raise the threshold. Although some small enterprises with insufficient strength can be eliminated, the increase in operating costs “may be an excuse for a new round of foreign milk price hikes”.

Annual inspection fee or increase by millions

In 2012, China's port inspection and quarantine departments detected a total of 566 batches of 318 batches of unsatisfactory imported dairy products, with a problem detection rate of 0.76%. Among them, 43 batches of unqualified infant formula milk powder totaled 80.95 tons, and the problem detection rate For the 1.13%. To intercept unqualified dairy products, the new regulations introduced this time increase the items and density of testing.

A Guangdong-based imported powdered milk distributor told the Yangcheng Evening News that after the implementation of the new regulations, the number of testing items will increase by 50%. The testing cost for a batch will increase by more than 10,000 yuan. If it is a large dairy product importer, one-year inspection The cost may thus increase by more than one million yuan. In addition, the time to market has also been extended accordingly. According to reports, the formal importation of dairy enterprises previously took shipment from abroad to obtain a Chinese health license, which took about two months, but now it will take at least three months and the cost will increase.

It is reported that the new regulations also proposes to establish a blacklist system for imported dairy products, requiring the inspection and quarantine agencies to establish a record of the credibility of imported dairy products. If it finds imported dairy products that do not meet the statutory requirements, the inspection and quarantine agency may list its importers, inspection applicants, and agents on the list of bad records; if there are violations and penalties, they may be included in the list of illegal companies and foreign Announced.

The above-mentioned distributors frankly stated that the increase in the cost of detection and illegality can eliminate some small enterprises and informal enterprises, which is still beneficial to regular importers and consumers.

Mid-year or new milk powder price surge

The increase in import costs of foreign milk powder has rejected many small and medium-sized brands. Some analysts pointed out that this means that the number of brands of imported infant milk powder will be directly reduced, which in turn will increase the price bargaining power of international first-line brands and allow them to grasp more capital for raising prices. Therefore, consumers are concerned that the new regulations will not lead to an increase in the prices of end products.

In an interview with the Yangcheng Evening News reporter, Wang Dingmian, a dairy industry expert, said that in the event of an increase in costs, companies will eventually pass on to consumers. “We do not rule out that dealers will use the new regulations as an opportunity to carry out a new round of price increases.”

“Even if there is no new regulation, the price of milk powder this year is very likely to increase.” The above-mentioned dealers told the Yangcheng Evening News that Chinese milk sources are mainly from New Zealand and Europe, but raw material prices in both places are rising. New Zealand is suffering from a drought this year. The supply of raw milk has fallen, while in Europe it is due to China’s frenzied purchasing that has caused local demand to fall short. Manufacturers have also started to grab milk from all over the country. “The shortage of raw milk has already made the price of raw material powder rise. Now we can see which one can't stand the first one to stand up and say that the price increases. According to the experience of previous years, it is during the period from May to August.”