Food and Beverage Business

Canada Royal Milk ready to produce baby milk for domestic market

Canada Royal Milk ready to produce baby milk for domestic market China Feihe Food and Beverage Business

Canada Royal Milk, a business established by China’s Feihe Milk in 2019 and based in Ontario, is set to launch infant formula in the Canadian market after receiving regulatory approval. Previously focused on producing powdered milk for various purposes, the company can now expand its product range with the green light from government officials.

The company has initiated the next steps to start production of the first batch of infant formula and aims to make the product available for retail distribution nationwide by this summer, as stated in a press release by Canada Royal Milk. “Just Food” has reached out to the company for further details on this development.

In 2022 and early 2023, Canada experienced shortages in infant-formula supplies, attributed to nationwide shortages in the US following the closure of an Abbott Nutritionals plant in Michigan due to contamination concerns. In response, the Canadian government allowed temporary imports of formula from Europe to alleviate the pressure on supplies.

After a four-month closure, the Abbott plant, a key supplier of formula to Canada, resumed operations. However, this incident emphasized the delicate balance of supply issues on both sides of the border. A recent report by the US Federal Trade Commission urged national regulators to re-evaluate policies to enhance competition and resilience in the national baby formula market, citing domination by a few manufacturers in the sector.

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In conclusion, Canada Royal Milk’s expansion into the infant formula market reflects the evolving landscape of the food and beverage industry. Stay informed, adapt to changing trends, and position your business for success in this dynamic market.