Published By : 30 Nov 2015 | Published By : QYRESEARCH
The market in China for imported foods has seen strong growth in the past few years. Earlier healthy, organic foods were launched in China for westerners living in the country. However, soon the demand for healthy, natural foods grew in China due to growing interest of locals in this food. China has observed many food scams in the past decade. The growing uncertainty regarding the conventional produce has turned many heads to health food stores that promise more pure food items.
Considering this opportunity many foreign countries have entered the China food market with several products. Among these countries, Australia is one of the top ones. Australia has exported in the past few years several food items to China. The trade of food and other products between Australia and China has been remarkable in the recent past. However, this has resulted in a major side effect.
Presently, Australia is witnessing a serious hike in prices of baby formulas. Parents in Australia are now experiencing huge price increases for products such as baby formula after the recent shortage in demand for brands available in local stores. The cost of one organic brand has grown by 33 per cent in the past few days. According to official trade figures, around 200 tons of dried infant formula was shipped to China this year. Over $26 mn worth of powdered baby formula, which is triple of the value of two years was shipped to China this year.
However, the government trade figures do not include smaller shipments that are outside the scope of custom thresholds of $2000 for parcel post or for foreign visitors that buy formula during their trips to Australia and take it back to home countries. Australian off-market exporters are now paying retail prices as less as $20 for tins of 800 gm of formula and reselling it in the Chinese market for 100 dollars or more. This has left Australian parents struggling for sourcing some brands.