Mengniu Plans to Acquire Australian Organic Baby Formula Milk Powder Brand Bellamy’s

On September 16, 2019, Mengniu Dairy announced that it intends to acquire Bellamy’s. Bellamy’s is an Australian organic infant formula milk powder manufacturer. According to the announcement, Mengniu and Bellamy’s signed an agreement on September 15th: Mengniu plans to acquire Bellamy’s at A$12.65 per share for a total price of no more than A$1.46 billion. Mengniu said that the acquisition can add to the business of high-end infant formula milk powder.

Milk Powder

The infant formula milk powder market has always been one of the larger categories in the Chinese dairy industry. The two-child policy in the Chinese government, as well as the impact of rising income levels of residents. The infant formula milk powder market is showing a good development trend. And the safety standards are further stricter, which also puts higher requirements on the production enterprises.

According to the official statistics of the Chinese government, there are more than 50 million infants and young children aged 0-3 in China in 2018. The market demand for infant formula milk powder is further opened. Since 2016, the size of China’s infant milk powder market has been expanding continuously, reaching 222.1 billion yuan in 2018. Relevant institutions expect that the size of the infant milk powder market will continue to expand in the future.

It is worth noting that in the Chinese infant formula market, Australian foreign-invested companies account for the giants. The Year 2008 “melamine” incident has caused many consumers to lose confidence in Chinese infant milk powder. It has caused a huge blow to the Chinese infant milk powder industry. However, in recent years, China’s policy release has continued to bring benefits to the infant formula market. Which has also boosted consumer confidence.

In the context of the favorable policies of the Chinese government, infant formula milk powder manufacturers must also pay close attention to product quality. And upgrade production processes to promote sustainable development of the industry. The first is the upgrading of production links, which is important in the entire industrial chain of infant formula. With the development of food technology, milk powder processing equipment such as sterilization milk powder drying and milk powder filling are all developing intelligently. Which not only greatly improves the efficiency of production and operation, but also improves the safety factor of milk powder and reduces man-made pollution.

Secondly, the transportation of formula milk powder should strictly. The production steps of formula milk powder are complicat. It is easy to pollut by the outside during transportation or production of raw materials. Therefore, infant formula manufacturers should use storage and transportation methods that are beneficial to extend the shelf life. When the milk powder in the process of filling and seaming of cans, infill nitrogen and seamed under negative pressure to maintain the freshness and extend the shelf life of the milk powder.

The quality of infant formula milk powder is not only related to the healthy growth of infants and young children. But also deeply related to the development and stability of society. In the favorable environment of the policy, the Chinese infant formula milk powder production enterprises should also enhance the trust and confidence of consumers in the domestic infant formula by upgrading the production process, strengthening the quality inspection, and establishing the food safety and quality traceability system. Thus promoting the further development of the industry.

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