Jessica Rudd puts Australian farm steak on barbie for China

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There are other marketing channels in China, of course, including diagou – the practice whereby local Chinese buy goods in demand in the Middle Kingdom and send them home through – shall we say – less formal distribution.

In light of the diagou fever affecting our market, CBD felt it was worth passing on the information from a fund manager who had first-hand insight into a diagou supply chain transaction in the western suburbs of Sydney for infant formula.

We’re not talking about smuggled cans in suitcases.

Diagou’s milk powder purchases are grouped together through five logistics operations. CBD has received photos from the larger diagou, which operates out of a timber warehouse.

The photo shows pallets loaded with 500 formula boxes (saving on freight costs) with up to 70 of those pallets being sent to China from this single warehouse.

Flavor of the month is A2 milk formula which can be bought locally for $ 26 but sold in China for up to $ 55 each, with no import duties it is supposed to attract.

With shares of A2 Milk rising 700 percent in the past year, it’s worth keeping in mind what would happen if there was a Bellamy moment.

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