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Under the new rules, infant formula makers1 have to obtain registration2 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 stipulate3 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 expiration4 date.
In a push to clear inventory5 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 inspections6. We basically have no surplus these days."
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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 vice7 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."
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 impede8 Yili's development."
The upcoming rules also require infant formula manufacturers to specify9 where the milk originated from, as well as where the formula and the additives10 were produced.
They also ban any marketing11 which claims unrealistic health benefits.
1 makers | |
n.制造者,制造商(maker的复数形式) | |
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2 registration | |
n.登记,注册,挂号 | |
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3 stipulate | |
vt.规定,(作为条件)讲定,保证 | |
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4 expiration | |
n.终结,期满,呼气,呼出物 | |
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5 inventory | |
n.详细目录,存货清单 | |
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6 inspections | |
n.检查( inspection的名词复数 );检验;视察;检阅 | |
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7 vice | |
n.坏事;恶习;[pl.]台钳,老虎钳;adj.副的 | |
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8 impede | |
v.妨碍,阻碍,阻止 | |
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9 specify | |
vt.指定,详细说明 | |
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10 additives | |
n.添加剂( additive的名词复数 ) | |
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11 marketing | |
n.行销,在市场的买卖,买东西 | |
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