Police have uncovered a massive quantity of baby formula stolen from Vancouver-area stores, believed to be destined for overseas.

Last month, officers received a tip that a person was purchasing large quantities of stolen baby formula. He was then shipping the stolen goods to China for a large profit, police were told.

Each of the tubs of formula have a retail value of about $33 in the Lower Mainland, Det. Const. Doug Fell said Thursday. On the streets in the Downtown Eastside, the value is about $12, but in Asia, the tubs can sell from $80 to $90.

In an investigation dubbed "Project Lactose Intolerant," investigators reached out to loss-prevention contacts at London Drugs and Shoppers Drug Mart. The retail contacts confirmed that they had noted a spike in thefts of the product in the last year, and loss-prevention staff at London Drugs had identified a suspect.

Police said they identified the same suspect during their investigation, a man who was "directing drug-addicted individuals and others" to steal formula from Metro Vancouver stores, officers said. Fell said large-scale retail scams like the formula thefts are often based around on an individual – called a "fence" – who uses a "predatory method" to find others to do the stealing for them.

"The predatory method is they take our Downtown Eastside drug-addicted persons, who are disadvantaged, and they put them to work," Fell said.

Investigators estimate that, in this case, the fence had between 10 and 20 people working for him on a daily basis.

Because they were paid a higher rate than with some other products, the thieves were motivated to steal more, Fell said. He said the fence's employees were observed carrying as many as 26 units of formula to him at a time. They believe at least 100 stolen tubs of formula were turned in every day.

Once the formula was purchased, the fence stored it in his home, rented apartment and a small business he had ties to, police said. When their suspect was arrested, officers searched the properties and found approximately $50,000 worth of formula.

"This is what we did recover. What the concern is is what we didn't recover," Fell said, estimating that the fence may have shipped as much as $200,000 a year in the product.

"This individual was not here to store it, he was here to sell it."

Police believe he'd been sending the stolen formula to China by asking associates to take an extra suitcase on trips, or shipping it in boxes through services like UPS.

The 46-year-old man, who has not been publicly identified, has been released from custody, but police have recommended he be charged with possession of stolen property, trafficking in property obtained by crime and counselling to commit an indictable office. They believe he is responsible for at least 70 per cent of baby formula thefts in Metro Vancouver in the last year.

Officers said they expect to recommend charges against two other people in connection with the case, but did not provide further details.