Expert sees milk powder shortage in the Netherlands as market problem (2)

"In order to meet the excessive demand, the two main producers Nutricia and Friso have increased the production for the Dutch market by 50 percent in the last quarter of 2012. In the Netherlands, there were around 180,000 infants in that period and we know for sure that in theory they produced enough for them," Ouden said.

Demand in the Dutch market increased as a result of the milk scandal in 2008, when some milk powder products in China were found to be contaminated with melamine. The legal export value of baby food to China increased from 190 million euros (247 million dollars) in 2009 to 520 million euros in 2012.

Due to high overseas demand, Dutch State Secretary for Economic Affairs Sharon Dijksma organized a meeting with milk producers, supermarkets and drug stores earlier this month to discuss the issue.

She stated she would do everything to stop the illegal export of milk powder to China by setting up a special team that will track illegal traders.

"I will collect information about the trade of retailers in the Netherlands, so that I can inform the Chinese authorities each time a load of milk powder arrives in China. It will be no longer lucrative to collect milk powder on a large scale in the Netherlands and to send it in big quantities to China," Dijksma warned in a statement.

Meanwhile, the two main producers Nutricia and Friso have set a maximum to the number of packages that can be purchased per customer. Producers also increased production in recent months, but it remains difficult to meet demand, Nutricia said.