2017年CRI China's infant milk powder industry set for major reshuffle

 

China's infant milk powder sector¹ is set to undergo a major reshuffle in the new year when tougher new industry regulations take effect.

Tomorrow will see, what many call the "tightest rules" ever launched by China, come into force.

Under the new rules, infant formula makers² have to obtain registration³ certificates for their formula from China's food and drug watchdog.

Uncertified producers will not be allowed to sell their product in the Chinese market.

Rules also stipulate⁴ that one factory will only be able to produce nine different products under three brands.

With around 2-thousand domestic formula products currently being sold without licences, its estimated around two-thirds of the producers could end up being shut down.

Infant formula which has been produced ahead of tomorrow will be able to remain on the shelves until their expiration⁵ date.

In a push to clear inventory⁶ ahead of the new rules, many milk formula manufacturers have been offering discounts of up to 50 percent in China since August.

The new rules have also seen a number of manufacturing facilities ramp-up to full capacity in a bid to produce as much as possible.

Chen Guanghui is the manager of a Heilongjiang based dairy producer.

"Normally, we're only putting out around one-third of what we're currently producing. They will be sold once they pass the inspection⁷. We basically have no surplus these days," said Chen.

As of this week, 33 Chinese infant formula makers have yet to obtain their certificates.

But instead of being shut down, many of these producers are now ripe for potential acquisitions by larger infant formula makers.

Lu Guang is the vice⁸ president of Heilongjiang Feihe Dairy.

"Feihe will not rule out acquistions, provided there are manufacturing and processing factories that we deem suitable for our needs," said Lu.

The new rules have prompted major producers like Yili Group to consider expansion both at home, and abroad, as a new factory would mean a potential addition of nine additional products.

Zhang Jianqiu, Yili Group's vice president.

"We have been expanding overseas to grow our global presence, with a focus on natural and intellectual resources. By establishing the world's largest integrated dairy production base in New Zealand's South Island, we have further strengthened our products and reduced any risks that could impede⁹ Yili's development," said Zhang.

The upcoming rules also require infant formula manufacturers to specify¹⁰ where the milk originated from, as well as where the formula and the additives¹¹ were produced.

They also ban any marketing¹² which claims unrealistic health benefits.

1 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

2 makers   

n.制造者，制造商（maker的复数形式）

参考例句：

• The makers of the product assured us that there had been no sacrifice of quality. 这一产品的制造商向我们保证说他们没有牺牲质量。
• The makers are about to launch out a new product. 制造商们马上要生产一种新产品。 来自《简明英汉词典》

3 registration   

n.登记，注册，挂号

参考例句：

• Marriage without registration is not recognized by law.法律不承认未登记的婚姻。
• What's your registration number?你挂的是几号？

4 stipulate   

vt.规定，（作为条件）讲定，保证

参考例句：

• International rules stipulate the number of foreign entrants.国际规则规定了外国参赛者的人数。
• Some manufacturers stipulate the price at which their goods are to be sold.有些制造商规定出售他们生产的商品的价格。

5 expiration   

n.终结，期满，呼气，呼出物

参考例句：

• Can I have your credit card number followed by the expiration date?能告诉我你的信用卡号码和它的到期日吗?
• This contract shall be terminated on the expiration date.劳动合同期满，即行终止。

6 inventory   

n.详细目录，存货清单

参考例句：

• Some stores inventory their stock once a week.有些商店每周清点存货一次。
• We will need to call on our supplier to get more inventory.我们必须请供应商送来更多存货。

7 inspection   

n.检查，审查，检阅

参考例句：

• On random inspection the meat was found to be bad.经抽查，发现肉变质了。
• The soldiers lined up for their daily inspection by their officers.士兵们列队接受军官的日常检阅。

8 vice   

n.坏事；恶习；[pl.]台钳，老虎钳；adj.副的

参考例句：

• He guarded himself against vice.他避免染上坏习惯。
• They are sunk in the depth of vice.他们堕入了罪恶的深渊。

9 impede   

v.妨碍，阻碍，阻止

参考例句：

• One shouldn't impede other's progress.一个人不应该妨碍他人进步。
• The muddy roads impede our journey.我们的旅游被泥泞的道路阻挠了。

10 specify   

vt.指定，详细说明

参考例句：

• We should specify a time and a place for the meeting.我们应指定会议的时间和地点。
• Please specify what you will do.请你详述一下你将做什么。

11 additives   

n.添加剂( additive的名词复数 )

参考例句：

• chemical additives in petrol 汽油中的化学添加剂
• It'says on the packet that these crisps contain no additives. 包装上说这些炸薯片不含添加剂。 来自《简明英汉词典》

12 marketing   

n.行销，在市场的买卖，买东西

参考例句：

• They are developing marketing network.他们正在发展销售网络。
• He often goes marketing.他经常去市场做生意。