(Yicai Global) Aug. 4 -- China has outed the first batch of formula milk powders approved for its new registration system.
The China Food and Drug Administration (CFDA) released a progress report on its new infant formula registration system policy yesterday, with 89 formula milk powders from 22 companies gaining approval.
Dairy firms with many plants won big this time. Among them, 12 from Beingmate Baby & Child Food Co. [SHE:002570] and 21 from Yashili International Holdings Ltd. [HK:01230] gained the green light, while nine each from Feihe International Inc. and US brand Mead Johnson & Co. gained approval. These companies combined accounted for more than half of the total formula milk powders accepted.
Most of the accredited enterprises are leaders in China's market, not only because they have strong technological reserves and research and development capability and made full preparations, but also because the government expects big companies to support the registration system, said senior dairy industry analyst Song Liang.
Most dairy firms are speeding up registration applications in anticipation of the impending release of the second and third lists, said Liu Xuecong, secretary-general of the China Nutrition and Health Food Association.
More than 60 percent of foreign brands have not yet submitted application materials.
Among the list CFDA published, products from five foreign firms and 17 Chinese companies registered.
Approved Chinese dairy enterprises mainly include Inner Mongolia Yili Industrial Group Co. [SHA:600887] and Yashili's Mengniu brand, while non-mainland brands comprise Wyeth Nutrition, FrieslandCampina Kievit GmbH, Abbott Laboratories Ltd. and Mead Johnson.
Certified enterprises will have more range in which to arrange production and marketing, an insider told Yicai Global. The market will shift to brands which have been registered and industrial reshuffling will accelerate.
Last year, 200-300 brands were eliminated and some mid-sized and small brands are expected to withdraw from the market this year, Song said.
CFDA promulgated a regulation on infant formula milk powders last year, per which only infant formula milk formulas registered with the agency may sell on the Chinese market. The policy is scheduled to take effect on Jan. 1.