Formula fight: Perth daigou operator defends practice amid reports of chronic milk powder shortage
Mark GibsonToday Tonight
January 7, 2019 10:18PM
Perth
https://www.perthnow.com.au/news/to...f-chronic-milk-powder-shortage-ng-b881067386z
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Nothing gets Australian shoppers fired up like the battle over baby formula.
With reports of a chronic shortage, some mums claim they spend hours driving around Perth to track down the powdered milk.
Chinese Australians have been accused of stocking up, stripping shelves and sending the powder overseas, leaving Aussie mums high and dry.
But now one business operator sending stock overseas has decided to offer up another side of the story.
Amanda Chen knows that speaking out is risky but says the discrimination and the abuse can't get much worse.
For the past three years, Amanda and her husband Peter have run what's known as a ‘daigou’ business.
They buy baby formula, cosmetics and vitamins before selling them to customers in China.
It's all legal and it's all above board.
"The Chinese buy what they want,” Amanda said.
“(It) might be they want Pandora (or) Swarovski. I would say (I’m) a shopping consultant."
Peter said the business is registered.
“We’ve done everything we can and we feel that that's what all business should do,” he said.
It's a small operation run from home with an annual turnover of $500,000.
The pair say they pay about $30 for baby formula in Perth, then sell it for $40.
With a population of 1.4 billion, there's huge demand in China for powdered milk sourced from Europe, New Zealand and Australia.
The success of daigou businesses, operating here since 2012, means the big retailers have a two- tin limit per person.
Amanda spends her days driving to shops between Perth and Bunbury to stock up on formula.
Amanda and Peter say pictures prove the two-tin limit doesn't apply to everyone and when supermarket shelves are empty they often have plenty of formula sitting out the back.
The shortage, they say, is a furphy.
“There's stock there all the time,” Peter said. “There's signs on the shelves saying ‘if you're short, see the staff’. They'll get you your milk.”
Here's another part of the story most people don't know - supermarket giant Woolworths is in effect also a daigou business.
For the past three years it's been selling baby formula to China via a Chinese shopping website called TMall.
They charge around $50 a tin, as opposed to $30 in Australia.
Woolworths told Today Tonight: “Baby formula sold via Tmall is only a fraction of what is sold across our supermarkets on an average week.
“The vast majority of baby formula sold via Tmall comes only from the supply earmarked by the manufacturer for export on the international market and does not have an impact on the stock available for sale in our stores locally.”
With such high demand and at least the appearance of a shortage, most parents agree there has to be a better way.
Amanda and Peter say they just want a fair go from shoppers.
“I'm absolutely disgusted with the intimidation of a whole race of people and from retailers,” Peter said
“Leave us alone. Don't try and destroy us. We're not harming your market. Allow us to have a business.”
(20min delay)