Dutch government mapping the Chinese grey market for baby formula
Chinese expatriates have been buying up large amounts of Dutch baby formula and shipping it to their families in China for the past few years.
After the melamine scares of 2008 and later, it appears that Chinese parents no longer trust the formula from their own brands, even if it is made by Dutch manufacturers. Apparently there is a scarcity of baby formula in the Randstad region. Not just the Netherlands but also Germany, the UK, Australia and New Zealand suffer from Chinese bulk purchases, Gelderlander wrote last week.
Manufacturers and supermarkets have asked Minister Sharon Dijksma of Economic Affairs to interfere, NRC says. Dijksma has asked the Netherlands Food and Consumer Product Safety Authority to study the grey market. Producers of formula have promised to increase production in the meantime.
According to retail expert Paul Moers the shortage of formula in Dutch supermarkets is not because of Chinese parents buying all the product. Moers says according to Gelderlander that Nestlé, Nutricia and Unilever can simply make more money by selling to Asian countries:
“Multinationals are focussed too much on profit. How can it be that the Netherlands, where the product is made, has a shortage of baby formula? Doing business should also be based on morality and ethics.” Moers used be a manager for Unilever in Asia.
See also: Chinese buying up Dutch baby milk powder (RNW, 2010)