Growth in the infant formula market in Australia and in New Zealand has seen a steep rise in exports into China and the rest of Asia.
Earlier this year, Jamestrong Packaging opened a new infant formula can line in Kyabram, Victoria to cater for demand.
Joan Wei, managing director of Jamestrong Packaging’s parent company Shanghai Yuanlong Investment Company, told Can & Aerosol News the business is adopting an ambitious expansion strategy which includes using new and updated equipment and technology with proven success in China.
"In China there are very strict requirements for infant formula powder, especially in the infant formula can-making environment," she says.
"In the future, even in Australia and New Zealand, if canmaking businesses want to export infant formula to China they will be subject to the same kind of scrutiny from the Chinese government as its domestic suppliers are now.
"We just want to make our customers feel safer and more secure when they use our products to supply their food, particularly with infant formula."
Wei says some customers are already well known in China, and believes that in the future there is a strong opportunity for them to export, as well as build their Australian market share.
"The Australian market is steady and the population is relatively small," she says.
"It will be stable but it depends on our customers: where they will export to China with cans made here.
"We see that in the future, the Chinese and Australian food markets will be linked very closely, just like the resources market.
"Australia will be the food bowl for Asia."
In terms of meeting demand, Wei's company has had to invest in new equipment for Jamestrong that will prepare it for future competition.
"If you never invest, you can never get a better product," she says.
"If you cannot produce a better product, you will lose customers.
"We must be very careful with the safety and quality of the packaging for our customers because it’s all about food safety."
