China to impose strict labelling rules on infant formula

HONG KONG- On the heels of a new recipe registration requirement for infant formula, the China Food and Drug Administration (CFDA) has issued new rules regarding labelling. General slogans like 'imported milk source' and 'foreign pasture origin' will not be allowed following a three-month transitional period.

The CFDA is urging both local and overseas infant formula producers to conduct an evaluation of their packaging and labelling. In particular, it is imposing stricter requirements on product names, ingredients labelling, instruction booklets, as well as functional and other marketing claims.
Health claims made on labels, such as 'beneficial to brain development', 'enhances immune system' or 'improves digestive system' are not allowed under the new labelling rules.
There is a three-month transitional period for producers to complete self-checks, and the full recipe registration requirement will be implemented from January l, 2018.
HSBC in a client note says the new labelling rules and the recipe registration requirement should help consolidate the industry, but it believes it will also lead to greater destocking pressure in 2017. www.hsbc.com (ATI).