Retailers risk losing supply on hoarding

Main suppliers vow to ensure good supply of baby formula for all local mothers

Secretary for Food and Health Ko Wing-man on Friday warned retailers of baby formula that they risk losing their supplies if they are caught hoarding the products or engaging in any other trade malpractices.

The secretary spoke as new shortages of baby formula swept across the city, amid allegations that some retailers were holding back products from the market and in some cases refusing to sell except at inflated prices to cross-border parallel traders.

Ko made his comments as he emerged from a second meeting with major baby formula suppliers in the city. He cautioned that different government departments will make periodic inspections - so will the Consumer Council to prevent crooked retail merchants from profiteering during the shortage.

Gilly Wong Fung-han, chief executive of the Consumer Council, said there have been 26 complaints about milk powder already this year. Seven complainants said they were unable to purchase baby formula. However, Wong noted that in the whole of last year, the council received only 105 complaints pertaining to milk supply.

Ko said the main suppliers have promised to ensure a good supply of baby formulas until the Spring Festival, taking all consumer demand into account: local mums, cross-border purchasers and seasonal fluctuation, added Ko.

"The government hoped that there would be a safety net for local mums so that when they can't buy baby formulas, there are other ways to ensure that they can be provided adequate supplies," said Ko, stressing the retailers should bear the interest of all of Hong Kong in mind.

Following the meeting, major suppliers, in an attempt to win the confidences of local consumers, declared in succession that they would increase supplies to allay the concerns of local mothers.

Regina Tam, marketing director of Mead Johnson Nutrition (Hong Kong), a major supplier of baby formula in the city, said the company had noticed the demand for the products had increased drastically in the last two to three weeks.

Dating back to Jan 18 and until the lunar new year, manufacturers have committed to provide an extra 54,000 cans of baby formula for local mums. In the meantime, customers can order their product through a telephone hotline or an Internet platform.

Tam said if the company noticed retailers price gouging, or bundling products at extraordinarily high prices outside the market the company would refuse further supplies to the offending retailers.

Another major supplier, Friso issued a statement, saying it would double its formula milk products to 1 million tins to ensure adequate supply.

In response to some complaints that hotlines for suppliers are too busy, Friso also made adjustments, expanding its hotline to seven days a week, starting from Jan 26.

Facing the same challenges, Macao government on Friday decided to set up a centralized membership sign up scheme for local mums to buy the milk powder to give priority to local mums.

When asked why the government didn't adopt the same measure as Macao, Ko said the Hong Kong market and Macao are different, in terms of market size and population.

stushadow@chinadailyhk.com

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