Currently Australia has only 8 businesses with a lucrative license to sell baby formula to China.
Not sure if A2M is one of them?
As General manager of Camperdown Dairy International, Gavin Evans said, "The market up there is prepared to pay north of $US40 for a tin of infant formula."
Chinese consumers are currently paying around US$40/tin for some imported formula.
Coles boss John Durkan defends supermarket amid criticism over baby formula shortage
By Philippa Quinn
Updated about 8 hours ago
Photo: Mr Durkan said the shortage was an "industry-wide issue that needs an industry-wide solution". (Will Ockenden)
Coles managing director John Durkan has lashed out at the Assistant Trade Minister over his comments saying baby formula shortages are a "retail problem".
In a statement to the ABC, Mr Durkan said "suggestion that retailers are to blame is simply politicking".
The supermarket giant moved to defend itself after days of criticism from customers who have not been able to purchase certain kinds of baby formula at their supermarkets.
Senator Richard Colbeck told numerous media outlets he had met with the chief executives of Woolworths and Coles to discuss the shortages.
"I have had contact with some of the manufacturers, saying these are some of the issues that we have. But the reality is at the moment is this appears to be a retail issue," Senator Colbeck said.
But Mr Durkan has disputed that version of the meeting.
"The comments made by Senator Colbeck certainly don't reflect my recollection of our conversation," he said.
"We need to be looking for long-term solutions to this problem, not short-term point scoring. This is an industry-wide issue that needs an industry-wide solution.
"We have a four-tin limit in place but clearly we can't discriminate against any customers or demand they prove they have a baby to feed.
"We are simply not getting enough formula supplied and we have to service all of our customers."
He said some suppliers were delivering straight to customers overseas.
"Some of our suppliers are not delivering the amounts that we are ordering, and some of these suppliers are choosing to sell directly to customers overseas rather than supply their customers here in Australia," he said.
"Our team is doing its absolute best to have formula in stock for our customers that require it for their children."
Manufacturers looking offshore for big profits
General manager of Camperdown Dairy International, Gavin Evans, has geared his business for overseas markets.
The company is one of just
eight Australian businesses with a lucrative license to sell baby formula to China.
"
The market up there is prepared to pay north of $US40 for a tin of infant formula," he said.
Mr Evans said its range of infant formula products was a relative newcomer and it had not been easy to break into the Australian market.
"Australian consumers are not so keen on new products and it's very difficult to get shelf space for a new product," he said.
The Victorian diary company has locked in a deal to export $600 million worth of formula every year for the next 15 years.
It also has long-term deals with the US and countries in the Middle East.
http://www.abc.net.au/news/2015-11-...ot-to-blame-for-baby-formula-shortage/6937106
(20min delay)