John Whelan: Dairy farms and baby formula producers face squeeze in the US and China

New standards being introduced next month are likely to further increase Chinese consumers’ trust in local brands

As well as US measures to address its supply chain issues and market shifts in China, growing demand for non-dairy formula may increase pressure on Irish milk and formula producers. Picture: iStock

Three of the world’s largest producers of baby food, Danone, Abbott, and Wyeth — all of which operate manufacturing facilities in Ireland — are facing major market disruption with potentially dire consequences for jobs and dairy processors.

China, the world’s largest market for infant formula, and a major focus of these three exporters, has become particularly challenging as a result of Covid-19 restrictions, low birth rate, registration requirements, and intense competition from domestic Chinese manufacturers who have regained consumers’ trust.