Baby Food Shortage in Eurpoe

Write a two page report showing;
1.) summary of the article
2.) your analysis and opinions. Make sure to use graphical analysis to analyze the issues presented in the current event (Possible graphs: supply and demand, price control, shortage, surplus, etc.).

ANSWER

Baby Food Shortage in Eurpoe

The baby milk shortage in Europe has been caused by the high demand by the Chinese families.  Parents in china have been using the internet and tapping their contacts in Europe to purchase up stocks of grand superiority European-produced formula in most case often buying much upper prices than they would.  The reason for the chine to buy the foreign product is that they do not trust their own domestic baby milk formula which contained milk scandal in 2008, that left six babies died and 300,000 sick.

However, due to this shortage, action has been taken by countries like Britain, the Netherlands, Hong Kong, Australia, and New Zealand which have cut supplies from china’s key sources of imported infant care. Moreover, the same countries have limited the sales of principal brands of infant care to two and three in major retailers. Parents in Europe have been stockpiling the product at home afraid of the complete shortage of the formula but instead they have intensified the shortage.

The shortage was in progress from February, reported dm, a key succession of treatment supplies, which are the major vend outlets for infant foodstuff in Europe. The spokesman, of dm, Christopher Werner, said that due to the increased demand of Aptamil child food, they weren’t proficient to provide adequate formula, resulting to the limitation of the quantity of Aptamil products momentarily.

However, china residents took this in a different perspective. Ma Zhigao, who had turned to his family in Germany for provisions of Aptamil to provide for his 2-year-old child, saw that his associates, Chinese, were apprehensive to get seize of the overseas formula. He saw an opportunity and so he set aside business buying formula a broad and distributing to his relatives and selling the extra online. The sales curb, led to cutting into his business and he is now considering closing his online business if the ban is not lifted.

Consequently, demand shot up to additional four percent in the precedent year alone and could have gone higher if the sales had not been restricted. The high demand was due to the eager Chinese buyers and the worried Germans hoarding supplies. The companies producing these products, Milupa, reacted by increasing their production, milumil. As a result of increasing their supply, Heike Muller, spokesman for Milupa, said that the company had employed more personnel at its southern Germany Company and that it had extended its 24-hour phone hotline, which parents could call if they didn’t locate adequate formula in their neighboring provisions.

In conclusion, china has been the source of the decline in the European countries and this has been attributed to their lack of trust in their domestic baby products. I have anal sized that if this leading companies can open outlets to china or even import their products to the leading products such shortages can be avoided in European countries, and even more so the Germany residents would not hoard this products because there would be no shortage from the first  place. It is therefore, china and these companies to have a talk and solve this problem because if not, the Chinese people will find another way of finding these products.

Baby food shortage In Europe

References

http://www.nbcnews.com/id/51677253/ns/world_news-asia_pacific/t/baby-food-shortage-europe-due-china-demand/#.UYhWnspBkgo