Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Synlait misses out in first round of Chinese regulation

Synlait misses China regulation deadline as it waits on factory build

By Suze Metherell

May 1 (BusinessDesk) – Synlait Milk, the dairy processor which counts China’s Bright Dairy as a cornerstone shareholder, missed out in the first round of approvals under China’s new regulation of imported infant formula as it waits for the completion of its new processing and packaging plant.

The Ministry for Primary Industry expects Synlait will receive approval once the new dry blending and consumer packaging factory is built which is scheduled for completion next month, the Rakaia-based company said in a statement. Companies without the new registration won’t be able to sell infant formula produced from today in China.

A2 Milk Company, whose Platinum infant formula is manufactured at Synlait’s Canterbury plant, also missed out on registration, which includes demonstrating a close association between brand owner and manufacturer.

Companies can be registered after today although owners of infant formula brands who can’t demonstrate a close relationship with a manufacturer may struggle to meet Chinese requirements, Food Safety Minister Nikki Kaye said today.

China telegraphed its new requirements to the government last week by releasing an audit of a sample of New Zealand manufacturers conducted in March, leaving officials and companies scrambling to interpret the changes in time for today’s registration deadline.

Synlait said it had anticipated missing out on registration “for some time” and was well prepared with enough stock for itself and its customers to cover the period while it waits on registration. On Monday the company said it was “well positioned for China’s regulation changes” without disclosing an expected delay.

In January, Synlait said it expected sales of baby formula to fall below its 10,000 metric tonne target this year because stricter Chinese regulations had caused “considerable disruption” in that market. The dairy processor is spending $21 million expanding its laboratory and administrative facilities, in part to increase its testing capabilities.

Exporters and manufacturers to gain registration today include Sutton Group and Gardians, Danone-subsidiary Nutricia, Fonterra Cooperative Group, GMP Pharmaceuticals and Dairy Goat Cooperative (NZ). They represent about 90 percent of New Zealand’s infant formula exports to China by volume.

Shares in the NZX-listed Synlait rose 0.5 percent to $3.70. A2 Milk fell 1.2 percent to 80 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news