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Aussie Businessman Defends Reselling Baby Formula To China

An Australian businessman has put the blame for the shortage of baby formula on manufacturers for not keeping up with demand.

The Australia China Daigou Association was launched by Dr Matthew McDougall to improve awareness about the controversial Daigou-to-Consumer trading practice which sees products on Australian supermarket shelves being bought in bulk and then re-sold overseas at inflated prices.

Dr McDougall told Daily Mail Australia,

'Australian manufacturers have a responsibility to provide to all consumers,'

'Daigou fundamentally understand they can't continue to source baby formula from shelves en masse but their options are limited.' 

'Several small scale manufacturers have expressed interest in working with the association.'

'Some are motivated by profit but most are doing it to send tins back home to friends and family.'

'As an association, we need to create opportunities for manufacturers to work directly with the Daigou community and improve the way Daigou shoppers go about purchasing and shipping items to their buyers back in mainland China.' 

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However, Dr McDougall admitted that how the Daigou operate needs to be looked at.

'Daigou are doing it in such a way that it's impacting on Australian consumers and there has to be a better way'

'We are determined to stop the bad practices, which are harming everyone.'

It's believed there are up to around a staggering 80,000 daigou shoppers in Australia, forcing both Coles and Woolworths to move popular brands of baby formula behind glass to try and stop shoppers from stocking up.

The two-can limit per customer rule is also in place to try and help shoppers find the necessary formula they need for their children. 

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