Bellamy’s has revealed it has failed to have its products registered for sale in China, now that its manufacturing plant in Victoria is changing hands.
About 14 per cent, or $16 million worth, of the Tasmanian infant milk formula manufacturers’ products are sold in China.
Chinese officials announced that from January 1, it would require infant formula products to be registered with the Chinese Food and Drug Administration (CFDA).
In a statement to the Australian Stock Exchange, Bellamy’s said it would not achieve registration in time, due to the extensive testing required by the CFDA.
The regulatory change will see earnings hit from the first quarter of 2018.
Bega Cheese manufactures infant formula for Bellamy’s sites in Victoria.
Bega last month announced it would sell the manufacturing plant to Mead Johnson to fund its purchase of Kraft products, including Vegemite.
“Bellamy’s confirms that following discussions with Bega, its China products can no longer be registered at Bega’s Derrimut canning line,” the ASX statement read.
“Bellamy’s also confirms that its contract with Bega remains in place for other products.”