NZ infant formula exporters warned to raise standards for China market

Most New Zealand infant formula exporters still have work to do to meet new Chinese regulatory standards, New Zealand Primary Industries Minister Nathan Guy and Food Safety Minister Nikki Kaye announced Thursday.

The ministers issued a joint statement after New Zealand officials were formally briefed on the outcome of the Chinese audit of New Zealand manufacturers conducted in March.

"Based on advice from Chinese officials we expect most if not all of our 13 manufacturers to achieve registration, although all but one manufacturer have some actions they need to undertake before registration will be complete," Guy said in the statement.

The Ministry for Primary Industries (MPI), which was working closely with Chinese authorities, had provided details of the changes to the manufacturers and in some cases changes had already been made.

About 90 percent of New Zealand's infant formula exports were controlled by manufacturers working through the registration process.

The changes required of the remaining exports would be more complex.

"Chinese officials have made it clear that they will require a close association between the brand owner and the manufacturer. Yesterday they formally advised that in practice that means the brand owner having clear control over the manufacturing process and the product formulation for their brand," Kaye said in the statement.

"This will impact on those brand-owners who are unable to prove that close association. MPI will work with those brand-owners to advise them of options that could bring their brands into line with the new regulations," she said.

"However the new requirements will have a very significant impact on those exporters that are unable to demonstrate a close association. Our embassy in Beijing is seeking transition arrangements to help those brand owners who need to make significant changes."

MPI would send a senior official to Beijing in the next few days to assist in the transition process.

The new regulations applied to all countries, alongside strict regulations for China's domestic producers, as part of a long- planned change to China's regulatory framework for the manufacture and import of infant formula that will come into effect on May 1.

Retail-ready infant formula represented about 4 percent of New Zealand's dairy exports to China, or about 200 million NZ dollars (172.32 million U.S. dollars) out of total dairy exports to China of 5 billion NZ dollars (4.31 billion U.S. dollars) last year.

The main opposition Labor Party said New Zealand's food safety system had been compromised when the government "neutered" the power of the Food Safety Authority by brining it into the MPI.

Labor primary industries spokesperson Damien O'Connor said in a statement that the government had to set up an international food safety authority to restore New Zealand's reputation for producing safe food.

Dairy giant Fonterra launched a global recall of whey protein concentrate in August last year after a false botulism contamination scare, forcing infant formula made with the product to be pulled from store shelves.