As many as 50 New Zealand baby formula exporters look set to be blocked from exporting their products to China.
This follows a Chinese audit of New Zealand’s $200 million infant formula industry last month.
But food scares have China increasingly worried about product safety and it is imposing tough new rules from next week.
Food Safety Minister Nikki Kaye say it’s “really positive” that China has been making changes over the last 12 months to lift its food safety laws.
The Chinese audit has found 12 of New Zealand’s 13 major baby formula makers do not meet all the rules.
However, the Government is confident it can get them to comply in time.