The world’s biggest online shopping sales presented by China’s Single’s Day catapulted Australia into a massive shortage of baby formula. In the midst of the scarcity, Trans-Tasman dairy company a2 Milk is planning to set up a baby formula plant in Australia to meet the growing demands of its Platinum-branded products.

In the days leading up to the great online sale, Australian mothers were already reportedly facing an extreme scarcity of baby formulas, with supermarkets and pharmacies unable to provide a proper explanation for the lack of stock. The blame was then put on the bulk-buying of the product from brands like Bellamy’s and Karicare, which are sold online for a profit.

Recently a mother, Jessica Hay, who has a 3.5-month-old baby, spotted a group of four adults bulk-shopping tins of A2 Platinum baby formula at a Woolworth's store. She took pictures on her cellphone and posted it on a Facebook page, with the photo going viral with 6,000 likes and 2,500 shares.

A2 Australia Chief Executive Peter Nathan said that the company is trying to keep up with the strengthening demand of its Platinum brand product, which is so far only produced by Synlait in New Zealand. He added that A2 Australia is considering several options for efficient production, from building a plant in Australia to entering into a deal with local milk processor and starting production under contract. Nathan further noted that a contractual production would be a more practical solution for the short term.

“Clearly, we have got to make sure we have supply," the Sydney Morning Herald quoted him as saying.

Nathan also said that he was happy that the Platinum products by the company are gaining demand in the Chinese market. But the production of nutritional powders can be very expensive, as is exporting them to China, as processors are subject to strict regulations.

The Chinese demand for overseas baby formula products is not a new trend, with Hong Kong facing a similar shortage in baby milk powder in 2008 after as many as six babies died and 54,000 others had to be hospitalised due to a contamination of Chinese infant formula with melamine. China has since then banned the import of a number of foreign brands.

The Chinese Single’s Day online shopping event is a lucrative way for many to earn quick bucks. The shopping event this year has managed to collect US$9 billion (approx. AU$12.60 billion), which surpassed its last year’s sales.

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