GMP is one of the five manufacturers accredited this month by Chinese authorities to export infant formula to China. The company manufactures infant formula under its own brands- Cowala, Carrickmore and GMP - and also for a few selected third party brands.
While the company declined to name the brands packed under contract, it confirmed that some original equipment manufacturer (OEM) brands had dropped off since the false botulism case involving Fonterra WPC80 last year.
GMP deputy general manager Ravinesh Kumaran says some smaller brands already found it hard to recover from the botulism scare and the recent rule changes in China have further reduced the number of brands.
“We are left with very few brands. Also, we have set tough criteria to select brands to work with and have rejected requests,” he told Dairy News.
GMP Dairy started in 2009 and the plant was officially opened by Prime Minster John Key in 2012. A strong demand from China saw the company processing and packing more products for the Chinese market; today 80% of its infant formula ends up in China. Other export markets are Korea, Australia, Singapore and Taiwan.
While food safety standards are also high in other export markets, Kumaran says infant formula has become ‘a political matter’ in China since 2008.
“It’s a very sensitive issue and the media always pays big attention to it,” he says. “The higher standards apply not only to New Zealand but all infant formula manufacturers. It’s good to have high standards.”
The influx of many brands into China was also an issue. Kumaran believes there are about 3000 brands of infant formula sold in China and authorities found it hard to regulate the trade.
GMP buys its infant formula base powder from Fonterra.
