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Tainted Milk
Special> Tainted Milk
UPDATED: October 11, 2008 NO. 42 OCT. 16, 2008
Tainted Reputation
China's dairy market faces a challenge to recover following the milk powder scandal, despite efforts to ensure its safety
By YUAN YUAN
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Draft regulations on quality control for dairy products were also approved, stipulating stricter and detailed rules on animal husbandry, fresh milk collection, dairy production, domestic sales and import and export of dairy products.

The conference also heard about the efforts of different government departments to ensure milk safety in the wake of the scandal.

The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) sent more than 5,000 inspectors to scrutinize dairy factories round-the-clock immediately after the scandal broke.

AQSIQ Minister Wang Yong vowed to "make a substantial change in the production and distribution of dairy products."

"Food safety concerns not only the health of the public, but also the life of business," he said.

The inspectors covered all dairy producers across the country, monitoring the whole production process. Chemicals including melamine and cyanuric acid, non-food raw materials, recycled foodstuffs and deteriorated raw materials were weeded out, and food additives were registered with local quality supervision departments.

The inspectors also examined factory laboratories and equipment to see that they met the standards. Products for shipping or delivery must have complete production records and the endorsement of AQSIQ inspectors.

Dairy producers unable to carry out laboratory tests in their factories were required to go to public inspection and quarantine institutions.

Wang also plans to put in place a set of systems to secure scientific analysis, encourage public and private investigations and reward whistle-blowers.

He said fundamental work, such as establishing measurements and standards, accreditation and certification, quality inspection and quarantine as well as the utilization of data, would be made priorities.

The Ministry of Health dispatched more than 1,600 medical teams, involving more than 8,000 people. More than 4,500 medical institutions nationwide have helped with medical tests.

"There have been no deaths caused by drinking tainted milk powder since September 11," said Chen Zhu, Minister of Health, on September 28. "The number of affected infants has dropped by a large margin, and all the infants in hospitals are receiving proper treatment."

As for financial aid for the dairy farmers who have suffered from shrinking demand following the scandal, China's Ministry of Agriculture said on October 5 that it had developed an emergency rescue plan with the Ministry of Finance to give them special subsidies.

The ministry said 14 local governments had already come up with policies to stabilize the dairy industry. North China's Hebei Province, for example, has earmarked 316 million yuan ($46.4 million) as subsidies on the basis of 200 yuan ($29) for each cow. The government of the Inner Mongolia Autonomous Region has allocated 100 million yuan ($14.7 million) as subsidies for dairy farmers.

More than 150,000 officials were sent to overhaul milk-collecting stations and cow feed supply chains on October 2. A total of 18,803 milk-collecting stations were registered and checked, 98 dairy producers were investigated and 151 illegal companies were banned.

In an effort to encourage dairy producers to buy raw milk, the Ministry of Finance said last month that the interest rate for loans lent to dairy producers for this purpose would be reduced by 3.1 percent, or half the six-month lending rate, from October to December.

The future

"Since it can be put on supermarket shelves now, I think there shouldn't be

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