HK sets baby formula limits

Even if the quality is improving, she said, consumer confidence may not turn around in one or two years, and parents will never use their children, in many cases, their only child, as guinea pigs.

Also, the new generation of parents have more financial resources and time to think about not only how to keep their children safe, but also to make sure they are fit and healthy, Xu said.

Xu uses milk powder bought in Hong Kong to feed her daughter, because of Shenzhen's proximity. She said her family there also had to visit a dozen stores to find one that has stock and had been hit by increased costs.

"We saw prices go up about 30 yuan per can," she said. "That means 120 yuan more a month."

It is a headache Li Fang will face in about seven months. The 37-year-old Beijing mother has a 5-month-old daughter who she plans to breastfeed until she is 1 year old.

Li, a journalist, is also suspicious of the authenticity of the claim that 99 percent of milk powder produced on the mainland meets quality standards. She said information on such matters is not transparent.

Li said she will buy formula from Hong Kong, and many of her friends are doing the same if they can afford the higher expenses.

"I don't like the new limit because it affects my own interests," Li said. "But I also understand it is necessary."

Wang Dingmian, former vice-chairman of the Guangdong Dairy Industry Association, said Hong Kong's new regulation will have a limited effect on the mainland market, which has an estimated sales volume of 43 billion yuan.

The sales volume of formula sold in Hong Kong to mainland customers is estimated to be 1 billion yuan, accounting for less than 3 percent of the market share on the mainland, he said.

Wang said price hikes due to reduced supplies under the new regulation were seen mainly in Guangdong province, where many people take advantage of the proximity and border pass conveniences to be parallel traders.

Foreign brands may increase their supply to the mainland market and appear to gain because of the new regulation, Wang said. The dairy industry on the mainland should think about why foreign brands are trustworthy among Chinese consumers.

liyao@chinadaily.com.cn

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