There is a shortage of baby formula in China.
Baby formula is in short supply in China, but it’s not because of a shortage of the product. The Chinese government has been restricting the amount of foreign baby formula that can be imported into the country since 2008, which has led to an increase in demand for domestic brands. This has led to some people buying up large amounts of foreign baby formula and reselling it at a higher price on sites like Taobao.
A recent scandal surrounding New Zealand milk powder saw many Chinese parents question whether they should continue using foreign brands. The New Zealand dairy industry was accused of using Fonterra, a dairy giant that produces over 40% of New Zealand’s milk products, to dump unwanted milk powder on China. In August 2018, Fonterra announced that they had found traces of Clostridium botulinum bacteria in some batches of whey protein concentrate produced at their Hautapu plant.