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Australia’s exports of infant milk affected by China economy

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Exports of one of Australia’s hottest-selling products, infant formula, has been caught up in the market woes about the health of China’s economy.
Shares in some of Australia’s most-popular infant formula brands have plummeted.

One dairy executive said that despite the China slowdown, disposable incomes and sales in China were still robust.
“There is a disconnect in the market,” the executive said.

NAB agribusiness economist Phin Ziebell​ said demand for infant formula in China should continue to remain strong, particularly as the country moves from a manufacturing to a consumption led economy.

He said infant formula was different to other dairy exports because it was a premium, branded product.