Murray Goulburn off China list

Murray Goulburn boss Gary Helou says he expects more regulatory changes from Chinese authorities to control food safety.

01/02/2016 Murray Goulburn Managing Director Gary Helou oustide the company's office in Melbourne. David Geraghty / The Australian

Murray Goulburn chief executive Gary Helou says he expects more regulatory changes from Chinese authorities to control the safety and quality of food imports after the group’s products were given the green light to again be sold through e-commerce channels in China.

On Friday evening Chinese regulators released a revised “positives” list regarding products capable of cross-border trade. Both UHT and adult milk powder products, which were omitted from their previous list, were specifically included on the revised list.

“I truly believe their intent is to get more orderly, safe and proper processes into this supply chain. We welcome the clarity,’’ Mr Helou said yesterday.

Murray Goulburn told investors last week that Devondale consumer milk powder and UHT had been temporarily removed from some Chinese sites for immediate sale after they failed to make the “positive list’’ of products that could be sold on cross-border platforms. China’s creation of the list came after it imposed an 11.9 per cent tax on foreign goods bought online.

The news sent the value of Murray Goulburn units on the ASX tumbling but yesterday they closed 2 per cent higher at $2.17 and at one point reached $2.19, the level they were at before the Chinese regulatory news was released last week.

Mr Helou was part of the big Australian delegation that visited China last week with Prime Minister Malcolm Turnbull.

“We put our position forward to the regulators. It was an opportunity to talk to the representatives of the authorities about the need and wisdom of having consistency and clarity on regulations,’’ he said.

Last week’s news also hit the share prices of Bellamy’s, a2 and Blackmores, which have all since recovered. In a speech in China last week Blackmores chief executive Christine Holgate hit out at investment analysts for overstating the risk associated with the new regulations and for placing too much pressure on companies to deliver short-term returns.

Damon Kitney