Woolworths link to baby food racket

A screen grab from a Chinese web site shows instructions on how to smuggle baby formula from Woolworths & Big W. Source: Supplied

A CHINESE webpage is advertising that it can supply bulk orders of infant formula to buyers in China from a major Australian supermarket chain.

The site claims to have access to an employee or ''shopkeeper sister'' who can buy ''100% genuine'' formula from a Woolworths outlet.

News Ltd reported this week that pharmacy and supermarkets shelves across the country have been cleaned out of Australian and New Zealand name-brand powdered infant formulas after several health scares in China.

The Chinese website advertises that Karicare Aptimal Gold Stage 1 tins can be bought at Woolworths in Box Hill, Melbourne, for $22.49 each retail with the site organiser selling to buyers back home at about $37, an extra $15 per tin, or $90 profit per case of six.

Express shipping costs another $63.

The site adds that the price will not be negotiated.

The webpage also advertises the availability of different stage infant formulas at the nearby Woolworths-owned Big W.

A translation of the site says it has a ''shopkeeper sister from the supermarket to buy 100% genuine, date is always the freshest. The price is also transparent.''

The site adds that the price will not be negotiated.

As News Ltd reported yesterday, traders stand to benefit up to $700 a week, or more than $36,000 tax free from the scheme.

Woolworths said if any employee or their family benefited by such a transaction, the employee would be breaching its code of conduct.

''The Woolworths employee code of conduct is very clear about the company's position on the acceptance of gifts and gratuities and all employees are required to comply with this policy,'' a spokeswoman said.

On Taobao, China's equivalent of Ebay, there is a seller who claims to be the official agent for Nutricia, saying they have sold 28,354 tins of Karicare Aptimal Gold Stage 1 formula in a month for $34 per tin.

Nutricia told News Limited the person was not an authorised seller as it did not export Aptimal to China.

So-called ''grey'' imports are an issue of concern for Chinese authorities who are unable to detect thousands of tins of formula coming through China Post or via express mail services.

''The tins that are coming through, they don't know what is in it. The product could be anything,'' said Charles Zhang, international sales manager for Victoria-based Milk Powder Solutions which exports exclusively to China.

The site claims to have access to an employee or ''shopkeeper sister'' who can buy ''100% genuine'' formula from a Woolworths outlet.

''In November or December last year in Canton province, Chinese authorities destroyed a lot of tins that do not have any house certificate (from China Inspection and Quarantine) that were sent through 'grey' areas,'' he said from China yesterday.

Chinese officials have tightened legislation surrounding baby formula since the death of six infants and 300,000 more being made ill by a locally manufactured formula contaminated by melamine in 2008.

The local formula market virtually collapsed after the 2008 scare and any imports must withstand much tighter testing procedures with locals preferring ''clean and green'' Australian and NZ products.

But exporting and registering products in China and organising efficient and reliable supply lines is also notoriously difficult, turning exporters away.

Nutricia, the maker of Karicare and Aptamil brands which have been favoured by illegal exporters, said it has gone from making 5000 tonnes three years ago to 20,000 this year but only a small amount was exported.

They are however to boost production capacity by a further 50 per cent over the next 12 months as demand in China grows.

If you are unable to find Karicare and Aptamil products go to TerryWhitechemists.com.au or call Karicare toll free on 1800 258 268 or Aptamil 1800 438 500.

THE CHINA FORMULA

Website advertises to buyers in China offering ''100% genuine'' formula from Australian shops

Product is bought in bulk by agents in Australia from chemists and supermarkets

Formula is then sent to China via the 'grey' market, likely repackaged to avoid customs

Then re-sold in China at marked up price, making lucrative returns for all involved.

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