Families are willing to pay as much as 14% more for safer babymilkpowder in China. The trend was reported in a study presented by the Southern Agricultural Economics Association in Dallas, Texas, on February 1, 2014. The shift comes as the direct result of the scandals that have rocked the country over the last ten years, the worst of which came in 2008 when products laced with melamine poisoned a number of children.
The Chinese dairy sector has an enormous dimension, and demand is expanding. From 2006 to 2010, household spending increased by 189% in urban areas. In Shanghai, where powder milk consumption doubled, there was a 160% increase.
Guarantees of food quality and safety dominate consumer choices, with foreign producers beginning to attract favorable attention, even when they cost more. From a survey carried out on 1,500 residents of China’s largest cities it emerged that 44% of consumers of milk and its derivatives lacks trust in national brands, and 45% thinks controls are inadequate. Who wouldn’t want whats best for baby?