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    Aussie diary suppliers struggling to meet demand

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    2015-12-11 09:51CCTV Editor: Feng Shuang

    Australia is dealing with a milk powder boom. The country's dairy industry can't produce products including infant formula fast enough - to meet a growing Chinese demand.

    At the Eastwood Pharmacy in Sydney's north, workers cope with the afternoon rush. And leading that rush is the sale of infant formula.

    "I just wish we could keep filling the demand that customers want but at this stage we cannot produce anymore than what is already happening," said Collen Wall, manager of Eastwood Pharmacy.

    The same is true for producers.

    "We have been overwhelmed with demand from consumers but we are doing everything in our power at the moment to increase supply," said Peter Nathan, Ceo of A2 Milke Company.

    The much needed boost for Australia's dairy industry due to a rapidly increasing demand for milk powder from China.

    "This is because we have an industry that is traditionally very safe very secure," said Simon Hansford, CEO of Milk Power Australia.

    And that's important - especially after the 2008 milk scandal in China - which killed 6 children, and sickened hundreds of thousands of people.

    But food security is not the only driver.

    "We have the Free Trade Agreement, we have the removal of the one child policy, the growing middle class - all of those themes build into the fact that our brand has enormous growth potential in China," Peter Nathan said.

    In 2014, we estimate the value of the baby formula is $18 billion (AUD) and each year there is about 15-18 million babies born in China.

    Many shops and stores are finding the increased demand is making harder and harder for them to meet the needs of their regular customers bases. That's why many, including the major supermarket chains here, are limiting the number of baby formula tins each person can buy at one time.

    But that hasn't stopped some entrepanuers from buying in bulk, or calmed a social media backlash. This photo was posted on Facebook by an angry shopper - showing a shopping cart filled with baby formula cases from a nearly empty display.

    "We get people who have just landed in Sydney calling where is your shop, we've been recommended by friends to come here," said Collen Wall.

    The Eastwood Pharmacy has created a registry for mothers to help ensure the needs of their customers are being met. Because like many - they say the growing overseas thirst for Australian dairy products is showing no signs of slowing.

      

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