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To monitor the progress and effectiveness of measures implemented to improve the powdered formula supply chain in Hong Kong, the Food and Health Bureau (FHB) commissioned a consultancy firm to conduct surveys on the supply and prices of powdered formula at the retail level in different districts in Hong Kong on a regular basis. The latest survey results were announced today (November 26).
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 Friso and Mead Johnson.
The consultancy firm has conducted nine surveys on the above brands from late June to early November to collect information on powdered formula relating to changes in supply and prices, as well as whether there are any unusual fluctuations, during the period concerned (including the National Day Golden Week which is traditionally a peak demand period). Each survey lasted for five days, covering three stages of the aforesaid brands. The surveys were carried out in four districts known to have experienced more serious shortages last year, namely North District, Yuen Long, Sha Tin and Tuen Mun. The surveys also covered Central and Western District, where shortage of a particular brand was quite serious during the survey periods. A summary of the results is shown in the Annex.
The surveys revealed that the shortage of Friso products was quite serious between June and August. Although the situation improved in September and onwards, the brand's products, particularly its Stage 3 products, still experienced a certain degree of shortage. The overall shortage rates of Friso Stage 3 products in Yuen Long and Sha Tin were both 33 per cent between October 29 and November 2. The shortage rate for Mead Johnson products was lower and has remained stable.
There was no significant increase in the overall shortage rate of both brands during the National Day Golden Week as well as the days immediately before and after it. It is believed that this was because the Import and Export (General) (Amendment) Regulation 2013 has struck a balance among the supply, local demand and non-local demand after its implementation, and suppliers have adopted improvement measures for the powdered formula supply chain in response to the call from the Government.
Regarding retail prices, the surveys revealed no price fluctuation in major chain stores and 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.
The survey results have 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.
A spokesman for the FHB said, "The shortage of certain brands is still of concern. As the peak demand period in the run-up to Christmas and Lunar New Year is approaching, the FHB will urge the trade to be fully prepared to ensure sufficient supply of powdered formula for local infants and young children during the period."
The 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/Wednesday, November 26, 2014
Issued at HKT 19:24
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