Demand from China spurs formula production in Australia  

(ECNS) -- The huge demand for formula milk powder by Chinese parents has provided business opportunities for food companies in Australia.

As China's economy grew in recent years, the number of middle-class families has been on the increase. Parents who can afford it try to provide quality products for their children.

Baby formula brands imported from Australia, such as Gold Roo and Joey's, are sold for a retail price of 70 Australian dollars per can in China, 50 dollars higher than at home.

Australian food companies that want to seize the business opportunity have redoubled their efforts to promote the production of formula milk powder.

In the Central Victorian town of Tatura, 400 people have jobs turning liquid milk into infant formula.

In vast stainless steel silos, liquid milk is converted to milk powder. By adding vitamins, minerals, blended vegetable oils and extra protein, it becomes bulk infant formula.

Hamish Reid is business manager of nutritionals at the plant. "Our infant formula plants are running pretty much 24/7 with very little down time," he said.

Tatura company was bought by Bega Cheese last year, as part of the newly listed company's expansion.

Bega has invested nearly $11 million this financial year in Tatura - expecting the nutritional milk formula business to grow faster than all other divisions.

Dairy Australia predicts that the export momentum of baby formula will remain strong, because 17 million babies are born in China every year.

In the first quarter of 2012, China imported more dairy products than for the entire year of 2007.