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Associated Press
Baby formula purchases are limited in London and elsewhere in Europe, including Germany, because of Chinese demand for European brands.

China demand creates shortage of baby formula across Germany

– Yong-Hee Kim still can’t believe that in a prosperous country like Germany, powdered baby formula would ever be rationed and that she would have to scour shops in the German capital to find the right brand for her 13-month-old son.

But that’s what has happened since major retailers in Germany this year began limiting sales of leading brands of baby formula. Parents in Britain, the Netherlands and Hong Kong have faced similar restrictions.

The reason for the sudden shortage is a quirk of globalization – one that illustrates the complexities of supply and demand in a wired world.

Parents thousands of miles away in China have been using the Internet or tapping friends and relatives in Europe to buy up stocks of high-quality European-produced formula – often paying much higher prices than they would here.

Chinese demand for foreign brands soared after drought in Australia and New Zealand cut supplies from China’s major sources of imported baby formula. Chinese parents who have enough money have largely shunned local brands since a contaminated milk scandal in 2008 left six babies dead and 300,000 others sick.

With Chinese consumers turning to sources abroad, major retail outlets in Germany, Britain, the Netherlands and Hong Kong have limited sales of several leading brands of baby formula. In Europe, parents have been stockpiling the milk powder at home, further intensifying the shortage.

“They don’t sell more than three boxes of formula per store anymore. So my husband and I are checking out all those stores, running from A to B, to make sure we can get the right baby milk powder for our son,” Kim said as she watched her son at a playground in Berlin’s leafy Prenzlauer Berg neighborhood.

“We even end up paying two, three or four euros more for a box,” she sighed. “It’s really annoying.”

In Germany, the run on powdered milk started in February, according to dm, a major chain of drugstores, which are the main retail outlets for baby food in this country.

Sales clerks at stores in major tourist venues, including international airports and Berlin’s Friedrichstrasse train station, noticed Chinese travelers piling shopping carts to the brim with boxes of one popular brand, Aptamil.

“We noticed that due to extremely high demand we weren’t able to provide enough Aptamil baby food,” said Christoph Werner, a spokesman for dm. “So we decided to limit the amount of Aptamil products temporarily.”

Hong Kong also announced curbs in February on baby formula purchases by customers from mainland China.

The multinational food company Danone in Britain said it had significantly increased the production of Aptamil, after leading supermarket chains Tesco and Sainsbury’s said they had to limit formula sales. Stores elsewhere in Europe also limited sales of two other popular brands – Milumil and Cow & Gate.