31 Oct 2013

Most formula exporters will be run out of China - professor

6:48 am on 31 October 2013

An agribusiness professor is predicting a bleak future for many of the infant formula companies sending products to China.

Keith Woodford is a professor of farm management and agribusiness at Lincoln University.

He says the Chinese Government has grown tired of the cowboys in the infant formula market, including some New Zealand companies, which it views as taking advantage of Chinese consumers.

Professor Woodford says there is going to be a crackdown and many New Zealand brands will be run out of town within a year.

He says there is no place for very small New Zealand brands that are only sold in China and not in New Zealand.

Professor Woodford says the future for those small scale brands is very dim and he believes they will be gone within the next 12 months.

He says there will be a maximum of six New Zealand infant formula companies with a long term future in China.

"I'm not going to be specific about who those six companies might be, but they'll be large companies that can show they have an integrated system from the paddock right through to the packaged infant formula."