By Lee Spears and Helen Yuan
Authorities seized 4,247 tons of milk powder and 1,562 tons
of liquid milk laced with melamine, the official Xinhua News Agency said. The
China, the world's largest agricultural producer, has sent
inspectors to check dairy farms nationwide after Sanlu
Group Co., China Mengniu Dairy Co. and 20 producers
were found to have sold contaminated products. The scandal has revived concerns
“The dairy industry chain has been badly damaged and will need a much longer time to recover,” said Chen Gang, Shanghai- based analyst at Sinolink Securities Co. “The scandal has involved many producers, giving most people a big surprise.”
Melamine, typically used to make plastics and tan leather, has been added to diluted milk to make the protein content appear higher than it is, the government said.
Pesticide-tainted Chinese dumplings sickened at least 10
industrial dye has been found in duck eggs and carcinogenic fungicides in turbot fish in the past two years. Mattel Inc. recalled more than 21 million Chinese- made toys last year because of excessive lead content.
Inner Mongolia Yili Industrial
Group Co. fell 9 percent in
Beijing Sanyuan Foods Co., whose products were cleared from suspicion of tainting, surged by the daily limit of 10 percent for the fifth consecutive day, to 5.08 yuan. Sanyuan's market value has jumped 67 percent in the past six trading days.
Fonterra wrote down the value of its stake in the affiliate Sanlu by 69 percent, Chief Executive Officer Andrew Ferrier
said, after the
Sanlu received complaints in December and knew of melamine contamination in June, Xinhua said, citing the government. Fonterra last week said Sanlu's board was informed of the contamination on Aug. 2, after receiving complaints in March.
“If they were lying about it, then they were lying about it to us too,” said Ferrier. “If this allegation proves to be correct that would be absolutely appalling.”
Fonterra in 2005 agreed to buy 43 percent of Sanlu for $107 million.
The government should license and regulate milk collectors, remove operators without fixed premises and set up a tracing system for products, the Dairy Association of China said today.
“I don't know why young women these days don't breastfeed,” Margaret Chan, director general of the World Health Organization, said in an interview yesterday. “Breastfeeding is the best food for babies.”
Retail sales of infant formula are projected to climb 19
percent to $8.5 billion in Asia this year, helped by a 29 percent jump in
Murray Goulburn Cooperative Co.,
“We've seen increased demand for our milk powder products and also a lot of inquiries about availability of infant formula,” Mal Beniston, general manager of international sales and marketing, said. The Melbourne-based cooperative accounts for 9 percent of the global dairy trade.
Vietnam found melamine in a 101-metric ton shipment of powdered milk from China and has asked milk producers in the country to test their products by the end of this month, Saigon Times Daily reported today, citing Nguyen Xuan Mai, deputy head of Ho Chi Minh city's Institute of Hygiene and Public Health.
Mars Inc., the
Hershey Co., the largest
Nestle SA, the world's largest food producer, yesterday said
all its milk products sold in
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