The latest clash involves Viplus Dairy, established in 2013 to target Chinese consumers, which had its import licence suspended by Beijing on November 4.
The Certification and Accreditation Administration of China (CNCA) gave no reason for the ban, but in June the regulator said it had blocked 3.8 tonnes of Viplus formula from entering the country citing incorrect labelling.
If follows the entire Australian dairy industry being put on notice by Chinese authorities in late August over disputed claims about the quality of fresh milk exports to the mainland.
The Australian government has rejected the Viplus ban, saying it had investigated concerns about the company and found its food manufacturing processes met all the necessary safety and quality standards.
«The department has no concerns regarding the ongoing safety of the dairy products produced by Viplus and have advised CNCA of this,» the Department of Agriculture said in a statement to The Australian Financial Review.
«The department has requested the lifting of any suspension imposed on Viplus, and that Viplus be permitted to resume access to the Chinese market.»
Further reviews
Viplus said the department has conducted a review of its operations after the suspension notice was issued and found the company operated a «sound and robust system».
«Viplus will cooperate with any further reviews while continuing to supply high standard and high-quality milk formula to consumers,» its chief executive Peter Cunningham said in a statement.
The suspension of Viplus’ import licence is the latest bilateral dairy dispute between Canberra and Beijing, after China incorrectly said in August that Camperdown Dairy Company’s fresh milk exports contained harmful bacteria.
Camperdown was cleared of any food safety issues by Australian authorities, but halted its fresh milk exports to China over concerns its reputation could be damaged and because of its lack of control over the supply chain.
Earlier in the year Murray Goulburn briefly had its long-life milk removed from some e-commerce sites in China over concerns it had not entered the country via the correct channel.
China is the top destination for Australian food, fisheries and forestry exports, which topped $11 billion in 2015.
Within the dairy sector Greater China is the second biggest export market by value, accounting for $424 million during the 2015 financial year.
China’s suspension of Viplus’ import licence may be connected to concerns last year the company had used expired milk powder in its formula.
The issue was raised by a whistleblower promoting Australian authorities to audit and monitor the company.
Ongoing jobs
It was later cleared of any wrongdoing by the Department of Agriculture.
The department reiterated it had no such concerns about Viplus in its statement.
«Through investigation and audit the department is satisfied that there is no justification for the complaint and verified that Viplus Dairy is operating in compliance with both Australian and Chinese food safety requirements,» it said.
In 2013 Viplus, which is backed by Chinese investors, purchased the shuttered Bonlac Foods plant in Victoria’s Gippsland region.
It promised a $76 million redevelopment of the site, which would create 150 ongoing jobs.
But since reopening Viplus has twice been accused of not paying contractors and in March was sanctioned by the Fair Work Ombudsman for underpaying two Taiwanese backpackers.
Source: AFR
Link: http://www.afr.com/news/world/asia/australian-infant-formula-maker-banned-in-china-20161115-gsprpq
