Concerns have been raised about Ireland’s exports of infant formula to China by a TD who said that the market share of Irish producers is “coming under increasing pressure”.
There has been a “substantial fall” in Ireland’s market share primarily due to China’s falling birth rates, Fianna Fáil TD for Cork North-West, Deputy Aindrias Moynihan has said.
The deputy said China represents over 26% of the infant formula market globally, however, China’s population fell from around 18 million newborns in 2016 to what is now closer to 10 million.
Irish exports of infant formula to China accounted for €266 million of the €722 million exports in total to the country last year. However, this is down from a peak in 2017 at €618 million, Minister for Agriculture, Food and the Marine, Charlie McConalogue said.
“These exports are built on the efforts of our farmers producing a quality, traceable, high-standard product. It means we hold a significant portion of a valuable market. It is diminishing for the various different reasons.
“Bord Bia is a significant player in communicating a message to the customers on the quality product we have,” the deputy said raising the question whether a campaign is in place to address the pressure on the infant formula and dairy industry.
Infant formula exports to China
The level of market share of infant formula Ireland had developed in China “reflects the esteem” in which Irish milk is held, Minister McConalogue said in a recent Dáil debate with the deputy.
China’s falling birth rate and growing import substitution by Chinese infant formula companies have led to a reduction in the value of infant formula exports to China in recent years, he said.
While Bord Bia is working to ensure Ireland maintains and maximises its share of the market in China, the minister said “we will probably not see the infant market grow in any significant way”.
However, there is “significant potential” for growing other nutrition products, such as adult and elderly nutrition products and cheeses, Minister McConalogue said.
Chinese market
There is a “real market” for the nutritional qualities Irish milk products provide, on which Bord Bia and dairy companies want to build, the minister, who stressed that Irish companies are responding to new market opportunities, said.
For example, he added, by producing specialised nutrition products aimed at adults, including sports nutrition, and dairy nutrition products aimed at providing a healthy source of calcium and other nutrients for older persons.
Two of those products from Irish companies have recently been launched during a trade mission to China, including a new adult nutrition product aimed at older consumers.
The video below shows some of the Irish producers attending the international food and drinks trade show Salon International de l’Alimentation (SIAL) in Shanghai.
The Irish food and drinks industries had a strong presence in both the meat and dairy sections of the international food and drinks event earlier this month.