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Racism ALERT - Chinese and Baby Food

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djebel View Drop Down
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    Posted: 09 Jan 2019 at 6:54pm
What the kiss is going on ? 


STRIKE WHILST THE IRON IS HOT

reductio ad absurdum

The richest man is not he who has the most, but he who needs the least.

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oneonesit View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote oneonesit Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jan 2019 at 7:01pm
Pretty simple as I understand it. Chinese living in China don't trust the local stuff - regardless of how much local authorities try to assure them its ok. Wealthy Chinese will pay huge premiums for ours.
TBV Statistical Analyst - & often misunderstood !
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Post Options Post Options   Thanks (0) Thanks(0)   Quote ExceedAndExcel Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jan 2019 at 7:04pm
I wonder what sort of deal they’re getting on postage. I’ve looked into it and from what I can see Australia Post adds quite a bit to the cost and hence reduces margin. I’m sure some can be taken by travelers but doubt that gets you a lot.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Afros Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jan 2019 at 10:03pm
This has been going on in the social media world for a while with people uploading videos of Chinese people buying out the stock of a random shop, I think 60 minutes even ran with it at one stage. Surprised the formula producers haven't cut out the people and tried exporting it to China themselves?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Tontonan Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jan 2019 at 10:21pm
In 2008 there was a major scandal involving infant formula in China that was deliberately laced with Melamine that result in several infant deaths and over 50,000 babies being hospitalized.  

Melamine appears to increase the supposed protein content in infant formula but it is actually nutritionally empty and toxic.   This was not the first time, and the government made assurances previously that the infant formula was safe.  

Now middle class Chinese simply don't trust the locally produced formula let alone government assurances.

I have friend I garden with who is a wealthy Chinese woman who is in Australia to have her children educated ( Her son is at Melbourne Uni studying biology while her daughter attends Tintern CEGGS).   

She owns a financial services company, and apartment building and a number of factories in China. She first came to Australia to further her own education.   Her name is Luka - but she doesn't live on the second floor.  
She probably owns the second floor.  
She probably owns the building...

Anyhow Luka is a very industrious gardener and she was showing me photos of her garden at home - all 6.6ha of it !     

But it isn't a market garden.  She does not sell the produce - it is all for her extended family and any surplus goes to the village from whom she leases the land for $3k Australian annually. 

The reason for this is that she doesn't trust food production in China.  In her broken but effective English she says, 

" Many people in China.  Many shortcuts taken in food production.  Use too much medicines (chemicals).  Not good."

I have struck up quite a friendship with Luka.  She feeds me dumplings.  
There is an awful lot of goodwill in those dumplings. 


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Dr E View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dr E Quote  Post ReplyReply Direct Link To This Post Posted: 09 Jan 2019 at 10:35pm
Originally posted by Afros Afros wrote:

This has been going on in the social media world for a while with people uploading videos of Chinese people buying out the stock of a random shop, I think 60 minutes even ran with it at one stage. Surprised the formula producers haven't cut out the people and tried exporting it to China themselves?

My thoughts exactly ... there is an obvious demand, and cost doesn't seem to be the issue?
In reference to every post in the Trump thread ... "There may have been a tiny bit of license taken there" ... Ok, Thanks for the "heads up" PT!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Tontonan Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jan 2019 at 12:36am
The problem is not one of production or export.  The problem is distribution.  It probably wouldn't be a problem at all if it weren't for the internet. 

The notion that the Chinese are buying formula to help out relatives is a fantasy.  This is profiteering.  Perfectly legal both in Australia and China, but profiteering just the same.

Daigou is a Chinese term for 'personal shopping agent'.   These daigou are Australian residents and citizens who buy the formula and stockpile it until they have sufficient quantity to ship to China where it is distributed to the middle class via social media networks.  

The formula costs around $30 in Australia but sells on Chinese social media for $45 and more - and that stills undercuts what conventional retailers can do importing the product.  It seems there is a bunch of red tape.  

Companies like A2 are making a fortune and keeping tight lipped about it but I get the impression it is more profitable for them to supply Colesworth to supply the daigou than it is to bother with export licences and Chinese red tape.  Also once the formula is landed in China it's distribution is beyond the exporter. 

More overseas companies are getting permits to export into China but it comes at the expense of a discredited Chinese dairy industry that has never recovered from the recalls and prosecutions from the 2008 crisis.  China's largest dairy company went to the wall and confidence in the local industry has never been restored. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote oneonesit Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jan 2019 at 8:49am
Nice summary Tontonan. As long as the local manufacturers ramp up their supply to ensure ample in-store stock levels everyone's a winner as I see it.
TBV Statistical Analyst - & often misunderstood !
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