Milk powder domestic OEM processing or stopped

Hundreds of domestic milk powder companies will attend the meeting organized by the Ministry of Industry and Information Technology on the 18th to implement the “Action Plan to Improve the Level of Milk Powder Quality and Boost Social Consumer Confidence” (ie, “double mention” in the industry). Insiders pointed out that domestic processing of milk powder may not be allowed. On the other hand, the merger and reorganization will also be opened this week by Mengniu and Yashili.

The Ministry of Industry and Information Technology released the “Action Plan to Improve the Level of Milk Powder Quality to Boost Social Consumer Confidence” this month. It takes 3 months to conduct a special safety inspection on the quality of milk powder companies. Yesterday, an industry veteran who was close to the meeting introduced that participating companies include "foreign milk powder" that has obtained production qualifications in China. The meeting is intended to convey the spirit of the State Council's plan to further strengthen the quality and safety of milk powder and to convey measures on "double mention".

The above-mentioned person told this reporter that in the future or not allowed milk powder in the domestic OEM processing, that companies can only produce their own brand of milk powder. However, he believes that foreign OEMs will not be banned, but they must follow the "Administrative Measures on Inspection and Quarantine of Imported and Exported Dairy Products" issued by the General Administration of Quality Supervision, Inspection and Quarantine in May.

As for the external rumors, once it is implemented, it will probably eliminate as many as two-thirds of China's milk powder companies. The above-mentioned sources pointed out that some milk powder companies will be eliminated again, but the specific phase-out rate is “not a single number”.

It is worth noting that, in addition to "eliminate", "double mention" program also mentioned the "strong combination" of the milk powder industry, and "head of the line" will most likely be the Mengniu Dairy, Yashili, which was suspended both last week. After being contacted, they have the opportunity to announce "inside information" at the beginning of this week.