Skip to:

Main Content
Site Navigation
Site footer
Site site-search
Site Map
Network Navigation (other sites)
Make news.com.au your homepage
Fox Sports
CareerOne
Carsguide
RealEstate
News Network
News.com.au
News.com.au
National
World
Lifestyle
Travel
Entertainment
Technology
Finance
Sport
Video
Search
Sydney s Saturday auction action
Sydney s Saturday auction action
Buyers pack in to get a piece of Parramatta
Real Estate
Is this a great big Chinese lie?
Is this a great big Chinese lie?
Original Bronte semi sells for $500k over reserve
SUNDAY TELE REAL ESTATE - Bronte Auction
Trump offends everyone ... again
Donald Trump Holds Town Hall In New Hampshire
Couple buys 19 homes in a year
MUST 19 Homes Purchased in a Year: Emily and Luke
Japan s history making decision
Japan s history making decision
Ikea s crazy idea is paying off
MUST>>>New Ikea Store at Marsden Park
Latest In finance
business
retail
Parents outraged as Chemist Warehouse buys into Chinese baby formula racket
September 19, 2015 5:07pm
Residents of Sydney s Hurstville report shortages of infant formula.
FRANK CHUNGnews.com.au
Share
Share on Facebook
Share on Twitter
Share on Google+

Share on Reddit
Email a friend
DISCOUNT pharmacy chain Chemist Warehouse has begun offering direct shipping to
China amid claims it is taking advantage of the black market in Australian baby
formula, which local Chinese purchase and resell online and through social media
for massive profit.
Demand in China for Australian infant formula and other health products has skyr
ocketed since 2008 when melamine contamination saw six babies die and 300,000 fa
ll ill. In 2013, News Corp revealed that Chinese students were being recruited e
n masse to buy up infant formula to sell on the black market.
Since then, many chemists and supermarkets including Chemist Warehouse, Pricelin
e, Aldi, Coles and Woolworths across Melbourne and Sydney have introduced limits
on the number of tins per customer to prevent Chinese nationals depleting suppl
y for locals.
The limits have proven difficult to enforce, with shelves often stripped bare as
quickly as new stock arrives. In 2013, a $25 tin of formula would sell for abou
t $55. Today, the same tin can fetch up to $100.
It s happening everywhere at the moment, it s a real movement, said Simon Hansford, fo
under of Milk Powder Australia. Companies like [baby food maker] Bellamy s, a2, Swi
sse and Blackmores are absolutely cleaning up.
All the stuff going off the shelves in Woolies and Coles is going straight overse
as.
Angry residents of Sydney s Hurstville, which has a large Chinese population, have
vented their frustration on social media. One photo taken in the Hurstville Che
mist Warehouse shows a special promotion on a shelf of Karicare formula reading:
Courier to China. 7-10 days. September special: $7.50/kg .
Another photo taken at the Westfield Priceline shows a nearly empty shelf. Baby f
ormula limit. Three tins per family per day. Sorry for the inconvenience, the not
ice reads.
It is unclear how long Chemist Warehouse has been offering shipping to China, al
though it makes sense for the chain to aim for a bigger slice of the transaction
given the majority of formula sold will be shipped overseas anyway. Founder Dam
ien Gance did not respond to requests for comment on Thursday.
Courier to China. 7-10 days. September special: $7.50/kg
Courier to China. 7-10 days. September special: $7.50/kg Source:Facebook
This has to stop,

wrote one resident.

When we have to go to four different stores or supermarkets and still can t buy a s
ingle tin of what I need ... start looking after Australian babies first before
sending all of our stock overseas for a ridiculous profit. Money hungry f****.
One woman who said she previously worked at the Hurstville Chemist Warehouse sai
d she understood the frustration. It frustrates us staff members seeing them try
to buy it all and other families can t, she wrote.
As soon as the Asians know you have any in stock the whole family comes up and th
ey pretend they don t know each other. It s not fair, it breaks my heart when women
come in and can t get the formula for their kids.

One Hurstville resident said there were a growing number of bare-bones packing a
nd shipping outfits popping up posing as souvenir stores, purchasing stock in bulk
from the supermarkets and taking orders from China via social media platforms s
uch as WeChat.
In July, Vice reported on a similar trend in Melbourne s CBD.
Baby formula is not a restricted or prohibited item under the Customs Act and Cu
stoms and Border Protection does not control its import or export. There is no s
uggestion the stores are engaged in illegal activity.
Meanwhile, German discounter Aldi appears to be taking a stand. Twitter user Dre
w White reported staff at an Aldi store in Canberra confiscating items from a cu
stomer purchasing in bulk.
In a statement, an Aldi spokeswoman told news.com.au: Aldi Australia does not hav
e a policy regarding the bulk buying of products from Aldi stores, including inf
ant formula. However, Aldi stores reserve the right to limit customer purchases
to reasonable quantities, to ensure our products remain available to other shopp
ers.
Milk Powder Australia s Mr Hansford said the shortages were creating a panic for s
ome parents, but it was generally only in areas with large Chinese populations.
There s plenty of stock, it s just in these areas where the Chinese are hammering it.
The factories aren t keeping up in certain areas. It s more a logistics problem tha
n anything, he said.
He argued that the Australian government should be treating Chinese students as
sales reps, highlighting the opportunities of the China-Australia Free Trade Agr
eement.
They get off the plane and get on the phone, and Mum says, What s good in Australia?
They say, The dairy s good, the water s good, the vitamins are good. She says, Send me
some .
If I was the government I d be standing at the arrival gate with a brochure: here a
re all the great things Australia has to offer.
frank.chung@news.com.au
Add your comment to this story
Comments Form
Enter your comment here *
1200 characters left
Jump back to top
Right now in finance
560Readers
Why Ikea China lets people sleep in its stores economy
413Readers
Baby formula: Selling to China leaves little left for Austra...
469Readers
China-Australia Free trade Agreement: #ChaFTA explained
187Readers
Japan s pacifist WWII constitution loosened, troops allowed ...
159Readers
Donald Trump won t attend Republican forum , anti-muslim bac...

business breaking news

11:31 AM
Ballmer surpasses Gates in Microsoft stock
11:19 AM
Mixed Samsung-Apple verdict
6:58 AM
Chevron profit plunges on lower production
22:52 PM
Dairy company plans $127m expansion
21:54 PM
Investors want Woodside to look at shale
Newsletter marketing promo
Mozo-powered credit card, home loan and savings comparisons
Daily Deals
Low Rate Home Loans
Discover rates as low as 3.99% p.a + free 100% offset account
Best Plans
GUIDE Our Top 5 picks of mobile plans
Optus Network
Deals from big and small carriers including Optus
Get $100 off at Coles!
On a single supermarket shop. New customers only, T&C's apply
No Annual Fee Cards
Compare and save on no annual fee credit cards now
eHarmony Australia
Better Matches That Lead to Great Dates. Join Free Today!
A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (inc
luding ads) you use across this site and use it to make both advertising and con
tent more relevant to you on our network and other sites. Find out more about ou
r policy and your choices, including how to opt-out.
News.com.au
Newsletter
Mobile
RSS
Advertise
About Us
Legal:
Privacy Policy
Relevant Ads Opt-Out
Cookie Policy
Terms & Conditions
News Limited Copyright . All times on this site are AEST (GMT +10).