Wednesday, 10 April 2013

Wake up and smell the Coffee whilst you can




Retailers in the UK are rationing sales of powdered baby milk because of a surge in demand in China.

Danone, the manufacturer of Aptamil and Cow and Gate baby milk powder, said most supermarkets were introducing a restriction of two cans per customer.

It said the limit was to prevent some individuals from bulk-buying baby milk for "unofficial exports".

Danone said in a statement: "We understand that the increased demand is being fuelled by unofficial exports to China to satisfy the needs of parents who want Western brands for their babies."

Supermarkets Asda, Sainsbury's, Tesco and Morrisons said the purchase of certain brands would be limited to two units per customer per day.

Though this may seem an extreme response to a specific issue (the reaction to locally produced contaminated product), there is no denying the potential demand from China for food and agri products.

China will continue to be a major buyer in the international markets in response to demand from its burgeoning middle classes.

 

By 2020 China’s consumers will be spending an annual £ £3,830 billion and their Indian counterpart’s £2,200 billion contrast this with British consumers who spent £937 billion last year.

 

A Chinese person born in 2009 will consume 38 times as much over his lifetime compared to one born in 1960.

 

With a population in excess of 1.3 billion (approximately 20% of the world’s population) imagine the implication for Western consumers should an early morning cup of coffee become the beverage of choice!

 

 

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