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Home / Business

Woman photographs 'organised ring' stocking up on baby formula at Australian supermarket

NZ Herald
31 May, 2017 05:41 AM2 mins to read

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An employee said that staff were struggling to manage the situation. Photo / News.com.au

An employee said that staff were struggling to manage the situation. Photo / News.com.au

A mother has spotted customers at a Sydney supermarket sneaking tins of baby formula through self-service checkouts.

Australian supermarket chains Coles and Woolworths have implemented a four-tin per customer policy after a formula shortage two years ago.

Kidspot reported the shortage was due to daigou - or grey market - which involves trade outside the normal import/export channels.

People buy stocks of formula and onsell it to China for inflated prices.

The woman said there were a large number of people with as much formula as they could carry.

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"Not to exaggerate but there would have been easily 20 individuals purely buying formula that night - in that one hour. Seriously they were everywhere - no wonder staff can't keep up!" she explained to Kidspot.

"Even the security guard was saying it's a daily occurrence that they have to escort people out and strip formula at registers when they refuse.

"My mother was with me and she said 'let's go back up and stop the other couple at the car'," the woman said.

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"But I had to say to her 'we just can't as there really are too many - we'll just see another group and we'll be here all night!'"

The woman alerted a store employee who stood guard over the stocks despite having finished her shift.

"She said they are just struggling to manage the situation, she quite often gets verbally abused and has to get security - she said they are waiting when she arrives to open the store at 6am."

"She has caught the same people who come every morning, changing clothes and coming back in for more at 8am after being stripped of formula. They even hold stock so that they can try and release it gradually to keep stocks up for mothers," the woman said.

"Unfortunately, I think there are groups that must be working for a larger syndicate - that then send volumes overseas," she said.

"Perhaps fining individuals could work but it is near impossible when they are monitoring staff shift changes and returning with different clothing."

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