The new political sword of milk powder refers to the appeal of domestic dairy enterprises to the regulatory authorities for a bowl of water.
With only half a month to go before the formal implementation of the new milk powder policy, during the consultation period of the measures for the Registration and Administration of Infant Formula Milk Powder (trial), it was reported that more than a thousand milk powder brands would withdraw from the market. this new policy, known as the strictest milk powder policy in history, has not only won applause from the industry, but also worried enterprises.
Recently, a reporter from the Securities Daily interviewed some domestic dairy enterprises. in their view, the main purpose of the above opinions issued by the State Food and Drug Administration is to control the confusion of too many brands in the domestic dairy powder industry. it is powerful for industry management and consumers. This new policy is only aimed at domestic enterprises and enterprises registered abroad are not restricted, there are no unified rules, how far can the new policy go? The effect is still unknown.
The new policy of dairy industry only aims at domestic dairy industry.
In fact, since last year, the state has stepped up supervision on the infant formula milk powder industry, including the renewal of production licenses for infant formula milk powder enterprises and the introduction of policies such as the merger and reorganization of dairy enterprises.
This time, the State Administration of Food and Drug Administration has once again stepped in to change the past "filing system" of milk powder formula into a "registration system". The same enterprise may not produce different brands of infant formula milk powder with the same formula. Moreover, there should be obvious differences between the product formulations of the same age group applied for registration by the same enterprise, and there is scientific basis to confirm that each enterprise shall not exceed 5 series of 15 product formulations.
According to the statistics of the State Administration for Industry and Commerce, at present, the number of infant brands in China has reached more than 2000, and the gap between each brand formula is very small, and the practice of one formula corresponding to multiple products is widespread.
A person engaged in the infant milk powder industry said in an interview with the Securities Daily that the brands of domestic infant formula milk powder are indeed messy, and many enterprises use one formula to make multiple brands to sell in different regions. After the introduction of the new policy, every domestic production enterprise should implement it, which should be conducive to brand concentration from the perspective of the industry.
In his view, the competition in the domestic infant formula milk powder industry will continue, the new milk powder policy has little impact on large enterprises, but has a greater impact on those less well-known brands. In addition, each enterprise must not exceed the policy of 5 series and 15 product formulations, and some enterprises will give up the regional market that they have worked hard for many years.
According to media reports, the new milk powder regulations may lead to the withdrawal of more than 1400 brands from the market, and the more affected enterprises may include Mengniu, Shengyuan, Sanyuan, Wandashan and so on, on the grounds that these enterprises have only one milk powder production license.
In this regard, Shengyuan responded that the impact of the new policy on the company is more beneficial than harmful. "there are too many brands in many enterprises, which is not conducive to the promotion of the main brands, while Shengyuan's organic Youbo and Super Youbo will certainly be retained."
Sanyuan Dairy said there were no restrictions on the company for the above policies. Wu Songhang, general manager of the company's milk powder division, said in an interview with the Securities Daily that the purpose of the implementation of the new formula registration policy is to control the chaotic phenomenon of too many brands in the domestic milk powder industry, and the policy is beneficial to the management of the industry. it's good for consumers. After implementation, some brands will be reduced to a great extent and the market will be purified within a period of time.
Wu Songhang also said that this registration system requires enterprises to have no more than five series, which has almost no restriction on three-yuan milk powder, because the three-yuan milk powder started relatively late, and the original series of products are few, so this time the impact is small, therefore, the three-yuan product strategy will not be greatly adjusted.
Domestic dairy industry and imported brands should be equal.
If the new policy of milk powder is successfully implemented, it will certainly play a positive role in purifying the market. however, some dairy enterprises are skeptical about whether this policy can meet the expectations of regulators.
Wu Songhang said that this registration system is only aimed at domestic manufacturers, but there are no requirements for those whose locations are registered abroad, which will cause domestic enterprises to buy small foreign factories one after another, and then launch more series of counter-sales at home. In the long run, the effect of the registration system will be greatly reduced.
Similarly, a domestic dairy enterprise also told the Securities Daily that the new deal can effectively reduce the number of brands to facilitate management and control, and can promote industry reshuffle and facilitate industrial upgrading. The starting point of the new policy is very good, the key is to revitalize the domestic industry, if the revitalization of overseas milk powder, then the loss outweighs the gain.
In this regard, Song Liang, a senior researcher of the dairy industry, said in an interview with the Securities Daily that at present, China's milk powder industry is rapidly in line with international standards, and it is urgent to promote transnational supervision and strengthen the management of imported products.
"at present, there are more than 2000 brands in China, of which at least half are from overseas, most of which are contract manufacturing. In this context, the imminent introduction of milk powder formula registration system is limited to domestic production enterprises, which will not have the effect of reducing brands and rectifying the market. Pure imported brands are not restricted by this regulation, which will only encourage more and more enterprises to produce overseas and then import into China, and at the same time prevent overseas enterprises from investing in domestic production, which will not only reduce domestic employment and tax revenue. At the same time, it will further shrink domestic milk powder production. " Song Liang said so.
It is understood that domestic dairy enterprises and imported milk brands belong to two departments, the former belongs to the General Administration of Food and Drug Administration, and the latter belongs to the AQSIQ. At present, it is the State Administration of Food and Drug Administration that has issued milk powder regulations, so it has no impact on imported milk powder brands.
The Securities Daily called the department in charge of imported food from the State Administration of quality Supervision and Administration to learn about the situation, but failed to learn about the new policy on imported milk powder.
A responsible person engaged in the processing and sales of overseas milk powder brands told reporters that at present, the new milk powder policy does not have a great impact on the company, but it is believed that unified laws and regulations will be implemented for imported milk powder and domestic milk powder in the future. at present, the company is still watching closely.
Wu Songhang said that managing the already chaotic Chinese milk powder market requires a systematic system to complete, which is not something a department can do well. It needs comprehensive management from milk source, factory, formula, circulation and other departments (involving agriculture, quality, food and drug administration, industry and commerce and other departments). However, the current management is mostly a section of each management, and the systematic deficiencies between each other need to be strengthened.
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