Encourage domestic companies to develop new products on the market

According to a plan released by seven departments including the National Development and Reform Commission on Monday, it is expected that the quality of domestic infant formula will continue to improve to meet the needs of domestic consumers.

The plan stated that the authorities will adopt strict standards to monitor the industry and will urge manufacturers to adopt higher standards than the minimum standards.

At the same time, enterprises and institutions are encouraged to cooperate in the research and development of new infant formula products to meet market demand.

Improving industry competitiveness will help promote large-scale and automated production, the merger of small companies, and encourage domestic companies to purchase or develop farms overseas to reduce costs, such as improving technology or land.

The authorities will also encourage foreign companies to set up joint ventures in China to help increase supply to the domestic market.

After the plan is passed, it is expected that domestic infant formula milk powder will account for more than 60% of the total supply, and consumers' confidence in domestic products will increase significantly.

In 2008, a major domestic infant formula manufacturer was found to contain melamine (a type of industrial plastic) adulterated milk, which made the product appear to contain more protein, so public confidence in domestic dairy brands declined in 2008. It caused the death of several babies and sickened tens of thousands of people.

After the incident, the government has strengthened supervision of the industry, including inspections before each batch of infant formula is sold. A survey conducted by the State Administration for Market Regulation last year showed that approximately 99.8% of infant formulas on the domestic market meet national standards.

Song Liang, a senior dairy analyst based in Beijing, said that although the quality of domestic products has improved, the public's confidence in domestic infant formula has not been fully restored. He said that last year domestically produced infant formula only accounted for about 40% of the weight of products sold.

"Under the strict supervision of the past 10 years, the quality of domestic infant formula milk powder has become a history," he said. "There is no difference between domestic and foreign brands in terms of the quality and safety of infant formula products."

He said that Chinese companies need to do more to increase public trust in domestic products, including strengthening public education.

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