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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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any quality problems," said a consumer buying local liquid milk in Century Lianhua Supermarket in Hangzhou, the capital city of eastern China's Zhejiang Province

Several brands of liquid milk, including Mengniu, Yili and Bright have returned to the shelves of this supermarket since the melamine test, and although sales are still down by around 50 percent, they are significantly up on September.

In a Wal-Mart in Hangzhou, sales of liquid milk have reached about 90 percent of the pre-scandal level, according to a sales assistant at the store.

Meanwhile, the sales of local milk brands from Hangzhou, including Shuangfeng, Meilijian, which tested free of melamine, have risen by about 20 percent compared to before the scandal.

The situation is the same in many places. On October 4, the AQSIQ announced that the latest sample test of 609 batches of liquid milk from 27 cities across China showed no melamine in newly supplied liquid milk. Altogether 75 brands were sampled for testing, including top-selling ones such as Yili, Mengniu, Bright, Sanyuan and Wandashan, according to the AQSIQ.

The test was the sixth in China since the tainted milk powder scandal broke. A total of 2,093 batches of liquid milk from 115 brands, among other dairy products, have been checked since then, said the AQSIQ.

In the previous inspection, on September 30, officials tested 265 batches of adult milk powder produced by 154 companies before September 14. The tests found 31 batches from 20 companies were tainted with melamine.

However, just when consumer confidence began to rise, it was knocked back on October 1 when the AQSIQ announced that another 31 batches of milk powder had been found to contain melamine, including Sanyuan, which had previously tested negative.

The new batches being tested were mostly milk powder products for adults. The melamine content in the Sanlu brand reached 6,196 mg per kg in its so-called high iron and zinc formula, the highest among all the samples.

The State Administration for Industry and Commerce (SAIC), which supervises product quality at the retail level, ordered all the tainted products to be immediately removed from store shelves on September 1.

For many consumers, the milk scandal raised concerns about all products containing milk. Many turned to bean products for protein as a result and mothers with babies began to use imported milk formula or to hire wet nurses.

The full recovery of China's dairy market is expected by the end of 2009, according to Huang Mao, a food industry analyst at Guosen Securities in Beijing. "There will be an increase in the market for baby formula milk powder," he said. "Imported milk powder, which has dominated the market in big cities, might spread to small cities and even rural areas and deliver a blow to domestic milk products."

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