The Infant Formula Exporters Association says several tonnes of baby formula from Australia and New Zealand has been rejected by Chinese authorities.
The association's chairperson, Michael Barnett, says between 23 and 26 tonnes of formula was dumped at the border, three tonnes of which may have come from New Zealand.
Mr Barnett says it is not yet clear why Chinese authorities think the milk didn't come up to scratch.
He says it is possible it was not New Zealand milk at all because some companies send formula to this country to be canned so they can put "Canned in New Zealand" on the label to make it more desirable overseas.
