A Melbourne woman was outraged after she saw a group buying dozens of tins of a rare baby formula

UPDATE: WOOLWORTHS is investigating after a mother slammed the supermarket giant for failing to stop a group of shoppers bulk-buying an entire pallet of hard-to-find baby formula.

WOOLWORTHS is investigating after a mother slammed the supermarket giant for failing to stop a group of shoppers bulk-buying an entire pallet of hard-to-find baby formula.

There had been about 50 tins of A2 Platinum baby formula at the Epping Plaza in Melbourne on Saturday before the group of four began their buying spree.

Jessica Hay was shocked, and then angry, when she saw the group loading up two trolleys with the formula while supermarket staff simply stood by and watched.

Most outlets enforce a limit on the number of tins one customer can purchase due to a formula shortage. But Ms Hay said no Woolworths staff stopped the group and at least one staff member just ignored another customer’s attempts to intervene.

Ms Hay had her three-and-half year-old son Archie with her at the time she saw the group, who had a small child with them when they made their purchases.

Australian baby formula is in such high demand in China that it often ends up for sale there via the black market. Demand has skyrocketed since 2008 when melamine contamination saw six babies die and 300,000 fall ill. In 2013, News Corp revealed that Chinese students were being recruited en masse to buy up infant formula to sell it overseas, making it hard to source for parents in Australia.

Since then, many chemists and supermarkets including Chemist Warehouse, Priceline, Aldi, Coles and Woolworths across Melbourne and Sydney have introduced limits on the number of tins per customer to prevent Chinese nationals depleting supply for locals.

But after witnessing the bulk-buy and Woolies staff do nothing to stop it, Ms Hay took a picture of the group and posted it online to a Facebook group for mothers.

Since then the picture has been shared thousands of times. Another group member posted it to Woolworths Facebook page and said: ““We are in a formula shortage and you are allowing this?! What happened to four tins maximum per person? Look at the empty crate in the picture?!” What happened to 4 tins per person? Look at the empty crate!”

Thousands of people liked and shared the post, but there was some support for the group from a few people who suggested people should stock up before they ran out.

“My blood was boiling for the mothers having problems finding A2 for their babies. I was feeling sensitive because I’ve got a newborn,” Mrs Hay told Fairfax.

Others though quickly pointed out there was a shortage and the people pictured could be selling them online and making big profits.

One of the group stood and waited by the near empty crate — almost as if she was guarding it — while the others filled the trolleys. By that stage there was only a few tins left.

Mrs Hay thought the check-out operator probably wasn’t aware that there was a limit

The limit on the popular baby formula varies from store to store. It was as high as eight per customer at one stage but then was reduced to four. However, in some stores there is no limit.

A Woolworths spokesman said Woolworths tried to make sure there was enough stock for all customers.

“In the case of baby formula we have an eight can limit per transaction to make sure all shoppers have the opportunity to purchase the items they need.”

Woolworths believes the Epping example was an isolated incident but was investigating it.

The limits have proven difficult to enforce, with shelves often stripped bare as quickly as new stock arrives. In 2013, a $25 tin of formula would sell for about $55. Today, the same tin can fetch up to $100.

“It’s happening everywhere at the moment, it’s a real movement,” said Simon Hansford, founder of Milk Powder Australia.

“Companies like [baby food maker] Bellamy’s, a2, Swisse and Blackmores are absolutely cleaning up.

“All the stuff going off the shelves in Woolies and Coles is going straight overseas.”

In September, news.com.au revealed discount pharmacy chain Chemist Warehouse had begun offering direct shipping to China amid claims it is taking advantage of the black market in Australian baby formula, which local Chinese purchase and resell online and through social media for massive profit.

Angry residents of Sydney’s Hurstville, which has a large Chinese population, have previously vented their frustration on social media. One photo taken in the Hurstville Chemist Warehouse shows a special promotion on a shelf of Karicare formula reading: “Courier to China. 7-10 days. September special: $7.50/kg”.

Another photo taken at the Westfield Priceline shows a nearly empty shelf. “Baby formula limit. Three tins per family per day. Sorry for the inconvenience,” the notice reads.

It is unclear how long Chemist Warehouse has been offering shipping to China, although it makes sense for the chain to aim for a bigger slice of the transaction given the majority of formula sold will be shipped overseas anyway.

“This has to stop,” wrote one resident.

“When we have to go to four different stores or supermarkets and still can’t buy a single tin of what I need ... start looking after Australian babies first before sending all of our stock overseas for a ridiculous profit. Money hungry f****.”

Baby formula is not a restricted or prohibited item under the Customs Act and Customs and Border Protection does not control its import or export. There is no suggestion the stores are engaged in illegal activity.

Meanwhile, German discounter Aldi appears to be taking a stand. Twitter user Drew White reported staff at an Aldi store in Canberra confiscating items from a customer purchasing in bulk.

Milk Powder Australia’s Mr Hansford said the shortages were creating a panic for some parents, but it was generally only in areas with large Chinese populations.

“There’s plenty of stock, it’s just in these areas where the Chinese are hammering it. The factories aren’t keeping up in certain areas. It’s more a logistics problem than anything,” he said.