Mothers buy foreign formula online

"Lin Fang," a source who spoke on condition of anonymity, sells Nutricia New Zealand Ltd products such as Karicare baby formula online. The products are unavailable on stores shelves in China.

Lin refused to reveal her real identity because her business is not legal in China, as she needs approval from the State Food and Drug Administration to sell imported food.

Many Chinese parents shun local brand milk powder after the Sanlu baby  formula scandal in 2008.

Her relative, who lives in New Zealand, purchases 15 boxes (about 90 tins) of milk powder from supermarkets in New Zealand every week and mails them to China.

Lin started selling baby formula last July through Taobao.com. She usually sells 10 to 20 tins per day for 170 yuan each. She earns a 10-yuan ($1.50) profit on each tin. The tins cost the equivalent of about 100 yuan each in New Zealand supermarkets.

She said her new business provides her and her newborn baby a comfortable life. She makes around 2,000 yuan every month, roughly equivalent to the salary she made before giving birth to her baby and quitting her job.

"It is really nice that I can take care of my baby full-time while still making some money," she said.

Lin is one of thousands of people in China who open virtual stores online selling foreign baby formula. A search for "private seller of foreign baby formula" on Taobao.com, China's biggest online shopping website, brings up 5,922 stores. Stores selling New Zealand brand baby milk powder are the biggest group followed by formula made in Japan.

The most popular brands are Karicare and Anchor, both made in New Zealand.

The amount of New Zealand milk powder sold online in China is of such volume that the New Zealand Food Safety Authority (NZFSA) has said it will investigate the matter, according a story on the New Zealand news website nzherald.co.nz.