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Food

There's a Massive Baby Formula Shortage and It's All China's Fault

China’s loosening of its one child per family policy has sent ripples far beyond its borders.
Photo via Flickr user Bradley Gordon

China's loosening of its infamous one-child-per-family restriction has sent ripples through its economy, starting with dramatic predictions for plunging of condom sales and rising baby food sales.

But when a nation of 1.3 billion people decides to lift a ban on baby-making, it's obvious that there will be consequences beyond its borders. Nowhere is this policy change more evident than in the aisles of Australian grocery stores, where Chinese consumers are buying up huge quantities of baby formula intended for resale in China.

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READ: The End of China's One-Child Policy Means Big Things in the Baby Food Industry

In fact, there is such huge demand for baby formula in China right now that supermarkets have begun to impose limits on how much formula each customer can buy in order to control the current shortage. Despite these efforts, it looks like it's only going to get worse for Aussies in days leading up to Singles' Day in China.

Because of November 11th's (11/11) connection to the number 1, it has become known as the "bare sticks holiday" in China, and is essentially an excuse for young single people to get together and belt out karaoke in the hopes of finding a mate with whom they can have more than one child. For some reason, Singles' Day has also become the Cyber Monday of China with online shopping sales to the tune of $9.3 billion in 2014.

Among the products selling out in the days leading up the Singles' Day is baby formula, forcing Chinese parents to look elsewhere, namely Australia. This has lead to accusations that Australian grocers and manufacturers have given the Chinese market preferential treatment.

"We have not been withholding supply where we can. We haven't favoured any particular country or retailer. We have not been underhanded in any way in managing this situation of unprecedented demand," Laura McBain, CEO of Bellamy's Organic baby food producer, told The Sydney Morning Herald. That being said, McBain also didn't deny the importance of the Chinese market to her company. "Our ambition and aim is to continue to deliver organic to as many mums possible, not just in Australia, but in China and across the globe."

Australian mothers like Jessica Hay are feeling the pinch. Earlier this week, Hay posted a picture of four shoppers pushing two carts packed with 50 cans of baby formula. The photo went viral and Hay went on a proper rant to local media outlet Fairfax. "My blood was boiling for the mothers having problems finding A2 for their babies. I was feeling sensitive because I've got a newborn," Hay said. "If they were with babies, it would be understandable, they need to feed their kids too. But it felt like a smooth operation, like they did this all the time."

Ironically, Singles Day sales seem to have benefited the least single people in China—those with kids and who are looking for a bargain in the baby formula aisle.