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NZ dairy 'falls from grace', European brands booming

(People's Daily Online)

16:43, January 31, 2013

China queries NZ about chemical residue in milk
Ministry of Health takes sample test of NZ dairy products
The impact of the detection of chemical residues in dairy products originating from New Zealand found in Chinese market is still spreading.

Although New Zealand insists dicyandiamide (DCD) is less toxic than table salt, reporter found that many consumers still have doubts about New Zealand milk powder, while at the same time, the purchasing agents are getting extremely busy with European milk powder business.

Overwhelmed by DCD reports, many consumers who follow the New Zealand milk powder for years began to change choices. According to Taobao, China's largest e-commerce platform, in the last seven days, New Zealand milk powder traded index were down 24.1 percent. On Jan. 27, the index once declined to zero, which means a marked decline in sales of New Zealand milk powder. Many foreign milk powder sellers are posting the official statement on their home pages, claiming they don't sell products of the Fonterra Group.

A Taobao shopkeeper told reporter, despite having put on New Zealand official statement on the webpage, recently the business has been "down" a lot. After training, the shop now requires customer service staff to be patient to explain to consumers and clear their doubts.

At the same time, some milk powder brands from Europe began to expand their market share in China.

According to media reports, recently, DM Stores, a large supermarket chain in Germany implemented restrictions for the purchase of infant formula; each customer can only buy up to four boxes each time.

At the same time, the Netherlands requires each customer can only buy a jar of milk powder. Affected by the "restriction", many European milk powder e-shops are considering raising prices. A Taobao shopkeeper advises reporter "to take advantage of the opportunity and buy more. If the restrictions are put into effect for a long time, price will continue to rise."

Read the Chinese version:新西兰奶粉"失宠",欧洲奶粉代购生意红火
Source: Morning Post
Reporter: Han Yuanjia

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