China's New Two-Child Policy Causing Baby Formula Shortage in Australia

The news that China lifted its one-child policy was big news to the world. The country, which is home to 1.3 billion people and has the world's second largest economy, would obviously have a change in behavior.

Predictions of plummeting condom sales and rising demand of baby food were obvious, but what is only being felt now is the effect of the new two-child policy to other countries.

For now, the hardest hit is the Land Down Under. They are now facing a shortage of baby formula as hoarders snatch up the products intended for resale in China, Vice reported.

The situation had become so dire that Australians vented on social media. Mothers looking for their own babies' formulas were shocked to see cartloads of formula being whisked away. See image here. Jessica Hay, who posted the online rant, had this to say,

"My blood was boiling for the mothers having problems finding A2 for their babies. I was feeling sensitive because I've got a newborn." She added, "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."

There are a couple of reasons why Australia is feeling the pinch. For one, yesterday was 11/11, which is Singles Day for single Chinese men and women. Singles Day, apparently, had also become Cyber Monday of China and online shopping sales topped up at $9.3 billion last year.

Local supplies immediately flew off the shelves and importers from Australia similarly emptied their own grocery shelves for the opportunity to cash in, ABC reported.

One other reason for the bulk buying is the marketing claims by baby formula companies that their products can produce genius children, the Sydney Morning Herald noted.

Dr. Karleen Gribble of Western Sydney University said, Formula marketers have tapped into this desire to falsely claim their products enhance brain development and health. Child prodigies and sports stars abound in marketing campaigns, and hospitals are recruited to promote formula brands to new mothers in hospitals."

Australian groceries heeded the calls of citizens to put a limit on the baby formula being imported to their detriment. Woolworths has clamped down on bulk purchases and its head office has re-issued an 8-tin transaction policy. Consumers have repeatedly requested to lower the limit to 4 tin cans.

Senator Richard Colbeck, who aids the Minister for Trade, said he had been trying to negotiate a deal with Coles and Woolworths.

He said, "There is obviously an immediate problem now. I am talking to as many people as possible. If you are a mum who is looking to get infant formula for your baby, there is no question that that would be an emotional thing."

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