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Chinese thirst for formula spurs rationing

By Amie Tsang, Louise Lucas and Neil Hume

Supermarkets as far afield _________the UK and Australia have been forced to ration infant formula due to (01) rampant Chinese demand for foreign-made baby milk, Mainland Chinese buyers have been snapping up cans of formula (02) across the globe following safety scandals in the domestic market, starting with the melamine-spiked milk of 2008 that killed six babies and left 300,000 sick.

Voracious demand for overseas-manufactured formula - Chinese babies are expected to slurp their way through $14.5bnworthofmilkpowderthisyear-haspromptedawaveofsmugglingringsandentrepreneurialescapades:cansareavailableonlineforRmb150-Rmb200(<span>$24-</span>32).</span></em></p><p><em>Production of formula is _________under pressure, as a severe drought in New Zealand - the biggest provider in the global dairy trade - forces up the cost of raw milk powder. The New Zealand price, a proxy for Asia-Pacific, was 30 per cent higher month-on- month in March. The frenzy for formula has forced governments to step in. Hong Kong, _________ shelves of formula are regularly cleared by mainland visitors, introduced curbs at customs in February.</em></p><p> <strong>(Adapted from Financial Times June 22\ ^{nd}$ 2013, from the Internet edition)