Skyrocketing demand for baby formula prompts supermarkets to extend rationing

AUSTRALIAN super­markets are cracking down on shoppers sending baby formula overseas, enforcing strict limits on the number of cans that can be bought.

Baby formula sold at a shop in Auburn.The product is hard to find.

AUSTRALIAN super­markets are cracking down on shoppers who are sending baby formula overseas, enforcing strict limits on the number of cans that can be sold to each customer.

A boom in demand for both formula and ordinary milk powder has been attributed to students and others buying it in bulk and selling to people in China.

Dairy Australia industry analyst John Droppert said while the resurgence of the trend was not as extreme as the “relative frenzy” of 2013 — when supermarket shelves were stripped bare — formula was again being shipped abroad.

He said supermarket rationing would safeguard local supply, and assured parents Australia was producing enough infant formula to meet demand.

Chinese Chamber of Commerce Victoria member Kee Saw said students were buying milk powder from supermarkets and selling it overseas to Chinese buyers, willing to pay a premium for Australian products seen as “clean, of high standard and unpolluted”.

But he said an even bigger drain on formula was caused by the common practice of people buying it as gifts for their relatives and friends in China.

“Australian manufacturers should set up outlets in China to tap into this booming demand,” Mr Saw said.

Milk Powder Australia chief executive Simon Hansford said whole milk for adults was also popular among people sending products back to China.

Australian supermarkets are continuing to ration baby formula, as oversees demand grows.

“The Chinese have been trying to stabilise their ­systems, regulate the ­market and produce their own brands but there is such a big demand for Australian brands,” Mr Hansford said.

But Melbourne mum Daniella ­Chapkoun told Leader Newspapers the rationing was annoying.

Having carried three tins around the store she was angered to be told, at the check-out, there was a two-tin limit on every transaction at Greensborough Plaza Coles.

“I’ve got three children under five so it’s not very easy to go shopping,” Ms Chapkoun said.

Hampton’s Ebony Millis supplemented her breastfeeding of five-month-old Hudson with infant formula for health reasons.

“I use an Australian-made, organic brand and I haven’t had any trouble buying it, but I have noticed some shelves for other brands such as S-26 have been quite empty,” Ms Millis said.

A Woolworths spokesman said last year they had implemented a four-can ­restriction on individual transactions.

Chemist Warehouse customers can buy two cans at a time of baby ­formula including brands such as Bellamy’s, Nan and Karicare.

A Coles spokeswoman told Leader that ­customers were limited to four cans of infant formula each, due to “short-term” supply issues.

Originally published as Skyrocketing demand for baby formula prompts supermarkets to extend rationing