Sigh of relief from MG after Chinese regulators change their tune

Murray Goulburn (MG) and other Australian dairy processors can breathe easy following the release of a revised ‘positives’ list of products capable of cross-border trade by Chinese regulators.

MG has announced that both UHT and adult milk powder products, which were omitted from their previous list, and which MG manufacturers and sells in China, are specifically included on the revised list.

MG said it has been advised by various commercial partners that they intend to return MG’s Devondale UHT and adult milk powder products to their cross-border platforms in the coming days.

“MG confirms that cross border e-commerce trade in both UHT and adult milk powders was interrupted for the past week, however as previously stated this interruption does not have a material impact on MG’s business,” the company said.

MG also announced it has signed an agreement to divest its 25.26 percent stake in food testing business, Dairy Technical Services Limited (DTS), to a consortium comprising Bureau Veritas Group and AsureQuality Limited.

DTS has four major shareholders including MG, The Warrnambool Cheese and Butter Group, The Fonterra Group and AsureQuality.