Dodgy traders still exporting formula
DODGY traders are continuing to flout Australia’s export laws by illegally shipping masses of infant formula to China.
The lucrative “white gold” baby formula trade is flourishing in Melbourne, with shonky operators snapping up supplies and exporting them to China at heavily inflated prices.
News Corp visited a shop in Springvale with a storeroom stocked floor to ceiling with hundreds of tins of infant formula.
Several workers were seen loading tins into cardboard packing boxes, which were transferred into an international cargo delivery van, bound for China.
Store manager David, who did not provide a surname, claimed he was “legally” exporting low amounts of stock and made “very little” profit.
“They (Chinese parents) need it,” he said.
David ordered a worker to shut the storeroom door when questioned about the export operation, and refused to allow an inspection.
He claimed there were few tins inside the storeroom, despite an earlier visit revealing a massive hidden stash.
“We don’t have too many because it’s hard to buy,” David said.
Nearby, also in Springvale, Australia SFX Global Express and ATExpress Freight Management shopfronts were stacked with infant formula tins.
Pop-up stores have previously been uncovered in suburbs including Abbotsford, Clayton and Glen Waverley.
China’s demand for Australian baby formula has soared over recent years amid ongoing contamination concerns with local formula brands.
Dodgy exporters have taken advantage, selling prod- ucts overseas for triple the price.
A tin of Bellamy’s Organic, which sells for $25 in Australia, can cost $84 in China.
The rort has depleted stocks in Australia, with stores such as Coles, Woolworths and Chemist Warehouse imposing limits of two or four cans for customers.
Others have taken formula tins off shelves altogether, and require customers to order online.
Infant Nutrition Council CEO Jan Carey said manufacturers had increased production to meet demand, but supply concerns remain.
“Our greatest concern is for the health and safety of babies and ensuring there is enough supply for the Australian market,” she said.
Small exports of baby formula are legal but those over 10kg must be sourced from registered export establishments, have a health certificate and meet all of China’s import requirements. Failure to meet these standards can incur penalties of up to 12 months’ jail.
The Department of Agriculture last year launched an investigation into the illegal trade industry and a spokesman said it was still probing claims of illegal exports.