DESPITE THEIR large herd sizes China is still a long way from becoming self-sufficient in dairy and it is highly unlikely it ever will, says Matthew Smith, Alltech’s vice-president Asia Pacific.
The $600 million per annum agreement, which was struck on the back of Australia’s new free trade agreement with China, will see the distribution of 10 million tins per annum across China.
“Australia currently sells and exports less than five million tins of infant baby former per annum in a market of almost 125 million tins,” Damien Weis, CEO Great Wall, said.
"The agreement with Great Wall will enable the brand to capitalise on the market of around 125 million imported tins as the major supplier of Australian infant formula to China.”
Mr Weis said the infant formula market has grown almost 24 per cent per annum between 2008 and 2013.
“There are 70 million children in China aged between 0-3 and the 2008 Melamine scare has meant parents are trying to avoid purchasing the local supply of formula,” he said.
Mr Weis said unlike other companies who buy their milk from third party farms, Camperdown prides itself on following an integrated model, tracking every step of the process by developing their own farms and processing and distribution centres.
“This integrated model is one of the first in the world, where we are able to track any tin of infant formula right back to the individual cows it came from.”