Bloomberg reports on the milk smugglers in Hong Kong:
Since the former British colony on March 1 restricted outbound travelers to two 2-pound cans each, a syndicate has been cracked and more people have been arrested for smuggling milk powder than were detained all of last year for carrying heroin.
The reason? Mainland Chinese demand for the formula, fueled by distrust of locally made food after product- safety scandals that included the deaths of at least six babies due to tainted milk. The U.K. and New Zealand are among countries that restricted milk sales as bulk purchases of brands such as Danone’s Aptamil and Mead Johnson Nutrition Co. (MJN)’s Enfamil caused local shortages.