China’s Plan to Boost Baby Formula Output Hits Foreign Suppliers

Photographer: Brendon Thorne/Bloomberg
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A2 Milk Co. led stock market losses of $875 million among infant-formula providers in Australia and New Zealand after China unveiled a plan to boost local output and reduce reliance on imports.

Under the new program, China aimsBloomberg Terminal to exceed 60% self-sufficiency for baby formula and improve the quality of domestic brands in its $27 billion infant-formula industry. Authorities are seeking to bolster consumer confidence following a deadly milk scandal in 2008.