The Ministry of Primary Industries in New Zealand issued an advisory on April 19 to the country's milk powder exporters, urging them to take action to repair damage done to the nation's brands by counterfeit products in China, Guangzhou Daily reported.

The release by the ministry was a response to recent reports that most of the brands of infant formula sold in Chinese markets are counterfeit.

On April 13, a domestic media outlet quoted a representative of the New Zealand Infant Formula Exporters Association who claimed that 90 percent of so-called New Zealand dairy products in Mainland supermarkets is counterfeit.

The report quickly spread throughout the local media, causing alarm over a source of milk powder that Chinese consumers turned to as a safe alternative since the melamine-poisoning scare.

The country only exports 20 milk powder brands manufactured by six companies to China, but more than 200 brands labeled as originating from New Zealand can be found in Chinese stores, according to the association.

The six exporters that were named include Carrickmore, Lact Nutrition, Naturlait and YumYum.

Many Chinese individuals and companies register brands in New Zealand but they do not source the milk locally, according to the association.

The association plans to design a logo and have it printed on product packages manufactured by its member companies to distinguish them from others.

Established in 2012, the association aims to protect New Zealand milk powder brands and reputation.

It will cooperate with China's quality watchdogs and industry representatives to ensure the infant formula produced and imported from New Zealand is safe for Chinese mothers and babies, according to the report.

However, the food quality supervision department of New Zealand, MPI, said the association's statement was not true.

Although the MPI could not give the exact number of officially registered New Zealand infant formula brands exported to China, it is certain that there are far more than 20 brands.

In addition, MPI also said the association does not represent the majority of the country's infant formula manufacturers let alone the local government.

Statistics from Euromonitor International indicate the six companies mentioned by the association are not industrial giants in New Zealand.

None of them have reached 0.5 percent of the total market share in the country, according to Guangzhou Daily.

According to the newspaper, China imported 91,000 tons of milk powder from New Zealand in January, an increase of 82 percent over the same period last year.

And, the 2015 target for annual trade between the two countries has been set at NZ$20 billion ($17.24 billion), but it will be realized one year earlier largely because of the dairy industry.

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(China Daily 04/24/2013 page17)