20 April 2019

New baby formula rules ‘will push up prices’, paper says

Mainland makers of baby formula will have to meet tough new safety requirements that some analysts say could lead to industry restructuring and price rises, China Daily reported Thursday. The new rules released by the China Food and Drug Administration Wednesday cover production equipment, safety, product tracking, and the purchase of raw materials, and put the formula manufacturers on par with pharmaceutical companies, according to deputy administration head Teng Jiacai. Producers will have to control their own dairy sources if their products come from fresh and raw milk. But the rules will increase production costs significantly, and as many as one-third of the existing baby formula producers might opt to leave the industry, one analyst was quoted as saying. 

– Contact HKEJ [email protected]



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