Australian company suspended from importing infant formula to China

AN AUSTRALIAN producer with over a 120-year history in dairy has been barred from importing infant milk to China.

Chinese authorities have revoked Viplus Dairy Pty Ltd.’s registration and the company's products have not been able to enter the market since 4 November 2016, according to China’s Certification and Accreditation Administration (CNCA).

Non-compliant

An inspection report (for Jan-May 2016) released in June by China’s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) revealed that some 3.8 tonnes of infant formula milk powder from Viplus Dairy were among those found "unqualified" according to their labels.

Viplus was founded in 1893 in South Gippsland, Australia, making it one of the earliest dairy enterprises to develop and produce infant formula milk powder in the country. Its brands in China include Viplus, Anbolac, Optimum, Olibaby, and My Cravings, to name a few.

(Image courtesy of CCM)

Prior to the suspension of Viplus, the Australian enterprise, Camperdown Dairy Company Pty Ltd also lost its license to sell in China last September 2016 after Chinese inspectors found unsafe levels of Staphylococcus aureus and colibacillus in its fresh milk. The company, which has been in the business for the past 125 years,  used to import fresh milk, fermented milk, fermented flavor milk, butter, cream and etc. to China, until 30 August this year. It is about the same time that the CNCA announced closer monitoring of products from Australian dairies.

Watchful eye on imported dairy products

Song Liang, senior dairy analyst in China, disclosed to CCM that a company’s registration can be suspended if unqualified products are found during inspection at customs declaration; if there are irregularities in certifications; irregular market circulation; or if products raise food safety concerns.

China has been stepping up efforts to ensure the safety of infant formula of late.

Since the melamine milk powder scandal in 2008, China’s demand for imported milk powder has soared.  In order to monitor the product in China, the AQSIQ released the Notice on Strengthening Management on Imported Infant Formula Milk Power (Notice). Since 1 May 2014, overseas dairy enterprises without a registration in China are not allowed to import infant formula milk powder to the mainland.

The Notice further says that overseas dairy enterprises are allowed to register in China only after its source, production, storage, transportations and etc., pass the inspection conducted by AQSIQ.

“If there is no special occasion or warning, infant formula which is imported before the registration suspension, can still be sold in China. However, the subsequent infant formulas are suspended from entering the country. If the suspension period lasts too long, the sales of dairy brands will be hugely affected in China,” stated Song.

Technology certificates required

To assess and control the risks during production and transport of Australian fresh milk, the CNCA requires local government departments and the 41 registered fresh milk companies to submit related technology certificates within a certain period; the CNCA also hires experts to conduct technological examinations and to ensure registrants are always up to speed.

Biggest export market

As China steps up its monitoring and supervision of dairy, it may raise some uncertainties within the Australian dairy industry, which counts China as its largest export destination. In 2010-2015, the volume of trade rose at a CAGR of 29.8%. In 2015/16 it reached 88,900 tonnes (USD186.6 million OR AUD245.8 million); so far 188 dairy plants in Australia are registered in China, including 8 infant formula producers.