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To follow up on the progress of implementation and effectiveness of improvement measures for the powdered formula supply chain in Hong Kong, the Food and Health Bureau (FHB) commissioned a consultancy firm to conduct regular surveys on the supply and prices of powdered formula at the retail level in different districts of Hong Kong. Results of the two surveys conducted between mid-May and early June were announced today (June 20).
For focused resource deployment and better survey efficiency, the surveys covered two brands with more serious shortages observed during the stress test conducted last year, namely Mead Johnson and Friso.
The surveys were conducted between May 17 and 21 and between June 1 and 5, covering the aforesaid brands' products targeting three growth stages of infants and young children. Both surveys covered three districts known to have experienced more serious shortages last year: North District, Yuen Long District and Sha Tin District. The survey in May also covered Eastern District and Tsuen Wan District, while the survey in June also covered Tuen Mun District and Wan Chai District. A summary of the results is shown in the Annex.
Compared with the results of the two surveys conducted between late April and early May this year, there was an increase in the overall shortage rate in five districts at retail level for all relevant products of the two brands. The increases in certain stages of products were particularly significant. Among these products, the shortage of Friso products was particularly serious, and the increases in the shortage rates of such products were also significant. For the Friso Stage 3 product, the overall shortage rate in the five districts was as high as 75 per cent during the survey conducted between June 1 and 5, while the shortage rate in Yuen Long District alone was 97 per cent. Among the five districts, Yuen Long District experienced the most serious shortage in both surveys, followed by North District.
Regarding retail prices, the surveys revealed no major price fluctuation in major chain stores or pharmacies. The prices remained stable during the survey periods. The retail prices in major chain stores were more or less the same as the suppliers' recommended retail prices, while the average retail prices in pharmacies were close to or lower than those in major chain stores.
A spokesman for FHB said, "We are very concerned about the recent shortage situation of Friso. We have contacted and written to the management of the brand, expressing our concern and strongly urging them to carry out effective measures immediately to ensure sufficient and stable supply of powdered formula for local infants and young children. We will closely monitor the situation and maintain close liaison with the relevant supplier to follow up on the supply situation."
The survey results have also been submitted to the Committee on Supply Chain of Powdered Formula to seek their further views on how to improve the supply chain. Such surveys will continue to be conducted in different districts of Hong Kong on a regular basis and the survey results will also be announced regularly.
FHB will continue to encourage the seven major powdered formula suppliers to actively promote pre-ordering services through various channels, including placing orders through suppliers' hotlines for home delivery or collection at chain stores, as well as the Coupon Scheme. Through separating local demand from non-local demand, these channels can act as a "dedicated supply chain" to ensure sufficient supply of powdered formula for local infants and young children. The seven major suppliers have pledged that parents placing orders through the above channels will receive powdered formula within three working days (excluding Saturdays and public holidays) after confirmation of the orders.
"We will continue to closely monitor the supply of powdered formula and maintain close liaison with the trade to ensure sufficient supply of powdered formula for local infants and young children," the spokesman added.
Ends/Friday, June 20, 2014
Issued at HKT 17:30
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