Milk company creates new product in a bid to stop buyers from emptying supermarket shelves

A milk company has created a new product specifically for Chinese babies to stop the flow of infant formula from Australia to China.

The a2 Milk Company will sell Chinese A2 directly into the Asian market to stop expats from emptying local supermarket shelves to send the product back home.

The drastic move comes after baby formula retailing for $25-35 for a kilogram in Australia were being bought in bulk and shipped to China where they were on-sold for more than $100 a tin.

Peter Nathan, CEO of a2 Milk Company Asia-Pacific explained Australasia was widely perceived to have the best source of diary in the world.

The product was only available online when first launched but will now be sold in supermarkets across China. 

The new product, however, will cost Chinese families almost 50 per cent more than formula shipped from Australia. 

Mr Nathan said the new A2 formula would also be made available to Australian families. 

‘Any mother in Australia who wants to buy A2 product, we guarantee we will provide them by an online facility within 24 to 48 hours,’ Mr Nathan said. 

Nestle, the world’s largest dairy company, and others are expected to join the Chinese infant formula market.

With demand growing 20 per cent a year, fears remain within the industry that the increased supply will not stop the demand in Australia.