From mining to dining
Australia transitions away from supplying China with metals, towards feeding Asia’s consumption boom.
ASIAN consumers determined to improve their lifestyle are boosting the fortunes of Australian producers of premium baby milk formula, vitamins and honey, as the region's burgeoning middle class jumps on the health food bandwagon.
With their expanding wallets, middle class consumers are fueling a sharp increase in sales of high- quality products from Down Under, sending the profits and share prices of health foods companies – particularly producers of infant milk formula – into unprecedented territory.
They are led by Chinese consumers fearful of lax food safety standards at home, where cost- cutting by producers have resulted in deaths and health scares.
“You've had almost three decades of incredible GDP growth ( in China) and that has brought a huge amount of spending power to the Chinese consumer,” said IG Markets' analyst Angus Nicholson. “And given the fact that there has been some questions around – particularly food, health and medical products – in China, there has been an increase in demand for foreign, top quality brands.”
The growth is being described as a shift from “mining to dining” as Australia transitions away from supplying China with key metals such as iron ore and coal towards feeding Asia's consumption boom.
While much of the focus has been on soft commodities like beef and dairy, smaller Australian- listed firms that produce infant
A customer browsing products at Mr Vitamins, a chain of supplement outlets in sydney. — AFP