The company has issued a statement on its website saying that it will stop selling four different kinds of baby formula in China because the cost of importing Australian milk has been rising year-on-year which has seriously affected its income. The four kinds of baby formula are all the dairy products Meiji has been selling in China. It will stop selling these products once all the stock has been exhausted.
Meiji entered China in 1997. It was banned in the nation because of foot-and-mouth disease in 2010. Market analysts said its sales in China dropped by at least 90% after the 2011 earthquake and tsunami in northeast Japan.
Wang Dingmian, former deputy director of Guangzhou Dairy Industry Management Office, said that Meiji’s retreat from the Chinese market resulted partly from recent tensions in China-Japan relations. It also can be attributed to the new nuclear leak at Fukushima.
Source: China Economic Net
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