Mainland dairy companies should learn lesson from HK law

Chinese dairy producers must reflect on why domestic customers have lost confidence in them, says an editorial in China Business News. Excerpts:

Hong King has banned Chinese mainlanders from buying more than two cans of formula powder per adult person each day as of March 1.

Hong Kong was compelled to take the controversial step because Chinese mainlanders buy so much formula powder from Hong Kong, local parents cannot easily get enough for their babies.

Since the melamine scandal in 2008, the Chinese dairy industry has not taken any concrete steps to help Chinese customers regain trust in their products. Some national famous brands proved not reliable. For example, salesmen from Bright Dairy, a household brand name from Shanghai, in 2012 changed the production dates of fresh milk to extend its shelf life.

Chinese quality inspection departments and trade associations should also learn lessons from the Chinese dairy industry and fulfill their responsibilities.

Chinese consumers have increasing access to foreign dairy products as China integrates into the global market. If Chinese dairy companies do not reform themselves, they will lose most domestic consumers, including consumers from the poor areas of the country.