Wattle Health Australia has gained Chinese approval for its baby food, but is still waiting on the crucial nod for its infant formula range.

The approval was for its WattleBaby Natural Baby Food range.

Wattle shares (ASX:WHA) rose 15 per cent to an intraday high of $1.51 on the news. They’ve traded between 69c and $2.80 over the past year.

Wattle won approval in June to sell a variety of general milk powder into China.

China has placed strict controls on milk powder imports and specifically infant formula after a series of contamination scandals.

Since the start of the year approval from China’s State Administration for Market Regulation (SAMR) is needed to import milk powders into China.

For infant formula, there are 13 manufacturers in Australia with China’s “Certification and Accreditation Administration of China” approval and 39 SAMR approval ‘slots’ available for Australian brands.

Under the new rules, up to three infant formula brands can be made at any one facility.

“This further increases our brand awareness in the highly lucrative Chinese market and generate additional sales across WHA’s extensive distribution network in China,” the company said of its baby food approval.

“This will also assist in sales of WHA’s infant formula range in China, once WHA obtains State Administration for Market Regulation (SAMR, formerly known as CFDA) accreditation.”

Wattle Health shares since the start of the year.

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