by Charles Liu
The NanfangToday, 11:43 AM
On the cusp of China’s biggest retail day of the year, Australian residents are complaining that local stocks of Bellamy’s Organic milk formula are being hoarded during a national shortage, only to discover this same baby formula is being resold on Chinese e-commerce sites at a marked up price.
A viral post on Facebook shows a Woolworth’s customer purchasing nearly the entire stock of A2 Platinum baby formula, which is about 50 tins, prompting outrage from Australian parents who already have trouble finding baby formula.
Jessica Hay, the mother who took the photos, was furious at the act of hoarding. “My blood was boiling for the mothers having problems finding A2 for their babies. I was feeling sensitive because I’ve got a newborn,” said Hay. “If they were with babies, it would be understandable, they need to feed their kids too. But it felt like a smooth operation, like they did this all the time.”
Other people who responded to the Facebook post were equally angry. AnneMaree Chapman lashed out against Woolworth’s by saying, “We are in a formula shortage and you are allowing this? These people bought all of this A2 platinum formula… all of it. What happened to four tins maximum per person? Look at the empty crate in the picture?”
Woolworth’s currently has a eight-tin limit for each customer on the purchase of baby formula. However, Australian consumers are pressuring the chain to impose a four-tin limit throughout the country.
But at the same time a milk formula shortage is hitting Australia, this “white gold” can be found on Chinese e-commerce sites at marked up prices. Bellamy’s Organic Step 1 Infant Formula, which retails for $24.70, is being sold on Taobao for about double the price at $52.
The shortage of milk formula in Australia coincides with the arrival of Singles’ Day (November 11), China’s biggest day for retail sales that is similar to “Black Friday” Thanksgiving sales in the United States. The Chinese demand for imported milk formula also comes from an unwillingness by Chinese mothers to breastfeed as well as lingering fears from a 2008 food scandal involving milk products tainted with melamine that killed six infants.
But while Australian parents are growing anxious over the drought of baby formula, baby formula makers are reaping profits from the surge in demand. In September, A2 chief executive Geoff Babidge said its infant formula sales were on track to triple this financial year.
“We have had significant growth on online sites such as Alibaba, and also at retail level at grocery and pharmacy where Chinese tourists and nationals are often buying products on trips and taking it back with them,” Babidge said. “We are clearly demonstrating that we are having enormous traction with Chinese nationals. There is no question about that.”
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