The Dutch government is investigating a shortage of certain brands of baby formula, as well as potentially illegal exports of the products to China.
However, the Dutch Economic Affairs ministry said there was no national shortage in the country.
Tainted milk scandals in China have created distrust of domestic brands, with families willing to pay a premium for foreign brands.
AAP reports Hong Kong, Australia and Britain have set limits on the sale of baby formula.
In a statement on Thursday, Deputy Economic Affairs Minister Sharon Dijksma said:
"There is sufficient milk powder available (in the Netherlands), but not always the required brand," she added.
According to Dutch Food Industry Federation director Philip den Ouden, there was a 50% jump in sales of infant formula this year, compared to last year. That did not correspond with the number of births in the Netherlands.
An initial inquiry showed demand was growing in China. Observers say a 2008 scandal where the industrial chemical melamine was found in baby formula is driving the demand for foreign brands.
Six children died as a result of the tainted formula and more than 300,000 were made ill.
Therefore, foreign brand milk powder sells for a huge premium in China. AAP reports this has resulted in bulk buying of baby formula from other countries to sell for profit in China.
To counter this, other countries have taken steps to limit the number of cans of baby formula customers can buy in a given day.