From January 1, 2018, China is expected to require infant formula products produced in China to be registered with the CFDA.
Bellamy’s said that following discussions with Australian company Bega, Bellamy’s Chinese products can no longer be registered at Bega’s Derrimut canning line.
The discussions became necessary as a result of Bega’s sale to Mead Johnson Nutrition.
The company said it is reviewing ‘multiple alternatives’ to obtain CFDA registration for its Chinese products, and believes it will do so, but not before the January 1, 2018 deadline.
Looking to mitigate interruptions
Bellamy’s says the delay is due to the time required to complete CFDA registration and additional testing of up to six months of the company’s products at an alternate canning line.
In the first half of the 2017 financial year, Chinese products accounted for approximately 14% of total sales. Bellamy’s said it is actively pursuing strategies to mitigate the extent of interruptions to the supply of its Chinese products.
The company has endured a difficult start to 2017, with major boardroom changes after an extraordinary general meeting in February, and its half-year financial statement revealing a drop in EBIT of 47%, and an increase in debt and inventory.