2008 Chinese milk scandal

Stripped shelves in a supermarket in China as a result of the contamination

The 2008 Chinese milk scandal is a food safety incident in mainland People's Republic of China involving milk and infant formula which had been adulterated with melamine. With China's wide range of export food products, the scandal has affected countries on all continents. By 22 September, nearly 53,000 illnesses, over 12,800 hospitalisations, and four infant deaths had been reported, caused by kidney stones and other renal failure. The chemical appeared to have been added to milk in order to cause it to appear to have a higher protein content. The same chemical was also involved in a series of pet food recalls in 2007. In a separate incident, watered-down milk resulted in 13 infant deaths from malnutrition in China in 2004.

After the initial focus on Sanlu Group, the market leader, government inspections revealed the problem existed to a lesser degree in products from 21 other companies, including Mengniu, Yili, and Yashili. The issue has raised concerns about food safety and political corruption in China, and it has also damaged the reputation of China's food exports; at least 11 countries having stopped all imports of Chinese dairy products. A number of arrests occurred as a result of the scandal, and the head of Sanlu, several provincial government officials, as well as the Director of the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) have been fired or forced to resign in response to the incident. The World Health Organisation referred to the incident as one of the largest food safety events it has had to deal with in recent years. It says the crisis of confidence among Chinese consumers would be hard to overcome.

Melamine

Main article: Melamine

Melamine is a man-made substance commonly employed in a variety of industrial products and processes, including the manufacture of synthetic countertops, dry erase boards, fabrics, glues, housewares, flame retardants and dyes. Nitrogen rich, it is sometimes illegally added to food products in order to increase their apparent protein content. Introduced to milk, it can help conceal its fraudulent dilution with water. Common nitrogen-based protein level tests used in China, such as the Kjeldahl and Dumas methods, fail to distinguish between melamine and naturally occurring milk proteins, allowing the protein levels to be falsified.

Melamine is known to cause renal and urinary problems in humans and animals when combined in the body with cyanuric acid, sometimes present in drinking water and in animal feed, so its use in food production is banned in China elsewhere.

Melamine adulteration of food products has made other headlines in recent years, including pet food recalls in Europe and the U.S. in 2007. It has also been employed as an additive to cattle feed to boost its nitrogen content, appearing in soy meal, corn gluten meal and cottonseed meal.

How it got into the milk

The World Health Organisation (WHO) said that "it appears that melamine can be found in a variety of milk and milk products at varying levels, from low ppb to ppm ranges." One academic suggests it may have been part of the food chain in China for a long time, as cyromazine, a derivative of melamine, is a very commonly used pesticide in China. Cyromazine is absorbed into plants as melamine, and may therefore be present in the food chain, including in poultry, eggs, fish, and dairy products.

It is not known where in the supply chain the melamine was added to the milk. The chemical is not water-soluble and must be mixed with formaldehyde or another organic solvent before it can be dissolved in milk. Caijing reported that 99% pure industrial grade melamine, costing ¥11,000 (US$1,600) per tonne, is too expensive to put into milk for the purposes of hiding dilution. They speculate that the melamine found in the tainted milk would have come from impure industrial melamine priced at ¥700 per tonne, and that Sanlu's baby formula melamine content was a result of replacing real milk protein with low cost vegetable protein (such as low grade soya powder), which had large amounts of low grade industrial melamine as filler. Low grade impure melamine would contain other more harmful material, such as urea, ammonia, potassium nitrate, and sodium nitrite. Among these, sodium nitrite is a known carcinogen.

Toll

On 17 September 2008, Health Minister Chen Zhu stated that tainted milk formula has sickened more than 6,200 children, and that more than 1,300 others, mostly newborns, remain hospitalised with 158 suffering from acute kidney failure". By 23 September 2008 about 54,000 children were reported to be sick and 4 had died. Nearly 13,000 Chinese infants had been admitted to hospital, 104 of them in a serious and painful condition. An additional 10,000 cases were reported from the provinces by 26 September. A World Health Organisation regional official said 82 percent of the children made sick by the formula were 2 years old or younger.

A lion cub and two baby orangutans which had been fed Sanlu milk powder at Hangzhou Zoo, were diagnosed with kidney stones.

Companies

Sanlu

The scandal began with revelations of contamination of Sanlu milk products.

Initial reports

The New Zealand-based dairy cooperative Fonterra, which owns a 43% stake in Sanlu, said they had been alerted to melamine contamination on 2 August (almost a month before the issue became public), and claimed to have pushed hard for a full public recall. Although there was an immediate trade recall, Fonterra said that local administrators refused an official recall.

Fonterra notified the New Zealand government on 5 September and three days later, the Prime Minister of New Zealand had Beijing officials alerted directly—and when the story became public with news reports in China on 9 September followed a day later by a Reuters release the only brand mentioned was Sanlu. . Although some state-controlled media report were not identifying the company involved postings on Tianya.cn, a Chinese social portal, also named Sanlu.

Cover-up allegations

The bulletin board of the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) indicated a rare occurrence of kidney stones in children – all causally traced to Sanlu milk formula – was flagged by at least one member of the public in June 2008 and by a urologist in a paediatric hospital on 24 July 2008. Neither received definitive replies. The paediatrician, who specifically asked the AQSIQ to refer his observations to epidemiologists, was asked to refer his query to the Health department.

Sanlu initially denied the allegations. According to accounts confirmed by media reports and health officials, the company tried to buy off critics and cover up the contamination. In a memo dated 11 August, Beijing-based public relations agency Teller International advised Sanlu to seek cooperation with major search engines to censor negative information. It was reported that the agency had repeatedly contacted key account staff at Baidu and proposed a ¥3 million (US$440,000) budget to screen all negative news. After the memo began circulating on the internet, Baidu denounced in a communiqué on 13 September 2008 that they had been approached on several occasions by said agency, saying that the proposal was firmly rejected as it violated their corporate principles of unbiased and transparent reporting. Fonterra said that it was following up on reports of this PR strategy.

Helen Clark said of the local government: "I think the first inclination was to try and put a towel over it and deal with it without an official recall." Western media have speculated that China's desire for a perfect summer Olympic Games contributed to the delayed recall of the baby milk, alleging that guidelines issued to Chinese media reporting food safety issues, such as cancer-causing mineral water, were "off-limits" although the Central government denied this. Hebei provincial vice-governor said his administration was only notified by Shijiazhuang on 8 September.

A State Council investigation revealed that Sanlu began receiving complaints about sick infants as far back as December 2007, but did no tests until June 2008. Leading government officials in Shijiazhuang city were found to be complicit, not reporting the contamination to provincial and state authorities until 9 September, in violation of rules on reporting major incidents involving food safety.

According to the People's Daily, Sanlu wrote a letter to Shijiazhuang city government on 2 August 2008, asking for help to "increase control and coordination of the media, to create a good environment for the recall of the company's problem products....to avoid whipping up the issue and creating a negative influence in society," Shijiazhuang city government spokesman Wang Jianguo expressed "deep guilt and pain" for "bungling of the best opportunity to report, "caus[ing] much harm to people's safety, and seriously affect[ing] the image of the Party and the government,"

Sanctions

On 15 September, the company issued a public apology for the contaminated milk powder; Sanlu was ordered to halt production, and to destroy all unsold and recalled products. Authorities reportedly seized 2,176 tons of milk powder in Sanlu's warehouses. An estimated 8,218 tons of product had been recalled, and another 700 tons was on its way back to Shijiazhuang.

Tian Wenhua, Chairman and General Manager of Sanlu and Secretary of the Sanlu Communist Party chapter was stripped of her party and functional posts during an extraordinary meeting of the Hebei provincial standing committee of the CCP; four Shijiazhuang officials, including vice mayor in charge of food and agriculture, Zhang Fawang, were reportedly removed from office. Shijiazhuang Mayor Ji Chuntang resigned on 17 September. Li Changjiang, minister of the AQSIQ, was forced to resign on 22 September following publication of initial findings of State Council inquest: Xinhua said that since numerous dairy companies were found to have melamine contamination, it was obvious that "there has been negligence in supervision", and so the leader should take chief responsibility. Investigators also blamed the Shijiazhuang government. Local Party Secretary Wu Xianguo was fired on the same day.

Arrests

Sanlu GM Tian was charged under Articles 144 and 150 of the criminal code. A spokesman for the Hebei Provincial Public Security Department said police had arrested 12 milk dealers and suppliers who allegedly sold contaminated milk to Sanlu, and six people were charged with selling melamine. 300 kg of suspicious chemicals, including 223 kg of melamine, were confiscated. Two brothers who ran a milk collection centre in Hebei had already been arrested for allegedly supplying three tonnes of adulterated milk daily to the dairy. The owner of another collection centre which resold seven tons of milk a day to Sanlu, was arrested, and his operation was shut down, leaving farmers in want of a buyer.

Effect on the company

The value of the company plunged as a result of the scandal On 24 September, Fonterra announced that it had written down the carrying value of its investment by NZ$139 million (two-thirds), reflecting the costs of product recall and the impairment of the 'Sanlu' brand "as a direct consequence of the criminal contamination of milk in China". By 27 September, China Daily reported that Sanlu was close to bankruptcy, and might be taken over by the Beijing Sanyuan Foods Company. A Sanyuan source confirmed the company was in discussion on "a potential acquisition".

Chinese majors

After testing samples from 491 batches of products sold by all 109 companies producing baby milk powder, the AQSIQ said that all 11 samples from Sanlu failed the melamine test. Sanlu, whose products sell at half the price of equivalents on the market, recorded the highest levels of contamination among all the samples tested, at 2,563 mg/kg or parts per million ("ppm"). Products from 109 producers were tested, and tainted samples were found among 21 other suppliers plus Sanlu, including China's two biggest dairies, Mengniu and Yili Industrial Group; concentrations ranged from 0.09 to 619.00 ppm. On 30 September, the AQSIQ announced test results of a further 265 batches milk powder produced by 154 different companies prior to 14 September, where it found 31 batches produced by 20 domestic dairy companies were tainted with melamine. The agency attempted to reassure consumers, saying once again that the majority of the country's production was safe - only 18% of samples had tested positive for melamine: "of the 290 dairies nationwide 154 dairies, representing 87% market share, 134 of these dairies had tested negative for melamine."

Foreign dairy joint-ventures

Mengniu-Arla, joint-venture between Arla Foods, a large Danish/Swedish co-operative and Mengniu. On 16 September 2008 Arla CEO Peder Tuborgh said that the contamination was a "national catastrophe". He announced that production was stopped after three out of 28 tests taken from Mengniu showed traces of melamine, and contaminated batches had been recalled. On 22 September, Jais Valeur, Arla Executive Director, stated that the joint venture was focusing on re-establishing the safety of, and confidence in, its locally produced milk powder

Impact

Chinese industry

Central government ordered the testing of product of all dairy producers, and to this end, some 1,400 teams of inspectors (5,000 in all) were dispatched. The domestic Chinese market has grown at an average annual rate of 23% since 2000. In 2006, milk production reached 30 million tons, ten times of the volume a decade before. It was valued at some ¥122 billion (US$18 billion) in 2007, and consumers have severely lost confidence in the industry. AQSIQ announced the revocation of all previously granted exemptions from inspection, and food producers were asked to cease citing the privilege in their advertisements. The State Council ordered an overhaul of the dairy industry, and promised to provide free medical care to those affected. Yili, Mengniu and Bright Dairy & Food Co. recalled tainted milk powders and apologised in separate statements. Mengniu recalled all its baby formula, and trading in its shares on the Hong Kong Stock Exchange was suspended on 17 September. Shares in other dairy companies fell strongly the next day. The AQSIQ and other state level food testing centres checked samples from more than 400 liquid milk producers, and found most diary products were free from melamine. However, the test for melamine showed contamination in 10% of samples from Mengniu and Yili and 6% of those from Bright Dairy. On discovery that liquid milk was also contaminated, the three were all stripped of their status as 'Chinese national brands'.

The revelations have exposed structural problems of inadequate production volume, inherent quality and poor production methods. The Inner Mongolia region produces over one-fourth of China's milk, and Mengniu and Yili have invested millions to establish state-of-the-art dairy facilities in its capital, Hohhot. The companies still rely on small-scale farmers for over 90% of their production because of the capacity constraint of the modern facilities. Both companies were said by farmers and agents to have habitually purchased milk which failed quality tests, for only two-thirds the normal price. A new policy was put in place on 17 September to stop that practice.

Use of other potentially harmful chemical additives such as preservatives and hydrogen peroxide has been reported by independent media. Quality tests can be falsified with additives: peroxide is added to prevent milk going bad; industrial vegetable oil is emulsified and added to boost fat levels; whey is used to increase lactose content. However, such means and technology are seldom available to ordinary farmers, meaning that the procurement chain is also implicated - milk agents are often politically well connected. The big dairy producers were complicit in producing "test-tube milk."

Consumer panic resulting from the contaminated milk has lessened demand for dairy products, causing hardship to more than 2 million Chinese farmers who have nowhere to sell their milk, and no means to support their dairy cows. Farmers have been pouring away milk, and contemplating selling cows into a buyerless market.

Foreign operations in China

Mengniu, which had struck a deal with Starbucks, was replaced by Vitasoy when the coffee retailer abandoned milk in favour of soya milk in its China operations. KFC also suspended selling Mengniu milk.

Tokyo-headquartered Lotte Group, a major snacks maker, recalled its popular chocolate-filled Koala cookies in Hong Kong and Macau because of contamination, and promised to "look deeply into all the details of the manufacturing process" in order to preserve customer confidence. The range was also ordered off Dutch shelves.

On 29 September 2008 British confectionery group Cadbury, which has three Beijing factories, withdrew all of its 11 chocolate products made in there on suspicion of contamination with melamine. The recall affected the mainland China markets, Taiwan, Hong Kong and Australia. Tests done in Hong Kong found out that excessive amounts of melamine were discovered in China-made Cadbury products such as Cadbury Dairy Milk Cookies Chocolate and Cadbury Dairy Milk Hazelnut Chocolate.

On 30 September 2008, Unilever started recalling its Lipton milk tea powder, which used Chinese milk powder as its raw ingredient, after the company's internal checks found traces of melamine in the powder. On the same day, Heinz discontinued the use of Chinese milk in making their products after recalling cases of baby cereal in Hong Kong after discovering they contained melamine.

On 2 October, 2008 the Taiwan Health ministry announced that six types of milk powders produced in China by Nestle contained traces of melamine. Nestle has announced that it will begin a recall of milk products produced in China.

Olympics

There were concerns that dairy products consumed during the 2008 Summer Olympic games may have been contaminated. Li Changjiang, the then Director of AQSIQ reassured the international community that all the food, including dairy products, was indeed safe. "We took special quality management measures aimed at food supply for the Games."

Outside mainland China

Chinese Customs said that exports of dairy products and eggs in 2007 were valued at US$359 million, a year-on-year increase of 90%. Since the news of the melamine contamination began to circulate, at least 25 countries stopped importing Chinese dairy products. A number of countries have imposed blanket bans on Chinese milk products or its derivatives —among which are Bangladesh, Bhutan, Brunei, Burundi, Cameroon, Chile, Colombia, Gabon, India, Ivory Coast, Maldives, Mali, Nepal, Papua New Guinea, South Korea, Suriname, Tanzania, Togo, and the United Arab Emirates — joining Indonesia, Taiwan, Japan, Singapore and Malaysia which have imposed specific bans on Chinese dairy products which have tested positive for melamine.

In Europe, the French authorities ordered all Chinese dairy products off shelves; Tesco removed White Rabbit Creamy Candy as a precaution from its stores in China, Malaysia and the United Kingdom. The candy's maker, Guan Sheng Yuan, stopped the selling of White Rabbit, and issued a recall to the 50 countries to which it exported.

Country/Regions	Products (*see official list)	Reaction
Australia	White Rabbit candy, Lotte Koala Biscuits, Kirin milk tea, various products	Food Standards Australia New Zealand issued a general warning on White Rabbit candies after testing found melamine contamination at 180 ppm. On 25 September, the NSW Food Authority had ordered a recall of all White Rabbit products, and called on wholesalers and retailers to remove the item from sale. The authority also pulled out Lotte Koala biscuits from all stores throughout the country, as a precaution after discoveries of melamine were found in them overseas, and withdrew Kirin milk tea after Australian tests showed contamination.
Argentina	48 different products, including Cadbury, White Rabbit and Yili	The National Administration of Medicines, Food and Medical Technology (ANMAT), decided as a preventive measure, to ban the import and sale of several products of Chinese origin that contain milk or any of its derivatives. The ban affects . The ANMAT published lists with the products and issued a general warning to the public to abstain from consuming them.
Bangladesh	Cadbury Dairy Milk with various other products	Bangladeshi food and drugs authority administered by the Ministry of Food reacted on the issue. A minister recommended avoiding Cadbury's products following a recall elsewhere of the company's China-made chocolate. The Secretary of Food Department said that whilst they were testing, they would only advise people to avoid it for want of enough evidence to ban this product.
Canada	Nissin Cha Cha Dessert mix	The four largest manufacturers of infant formula in Canada confirmed to the federal department that they did not use milk ingredients from China. On 26 September 2008, after H.J. Heinz recalled a batch of baby food in Hong Kong because it showed trace levels of melamine, the Canadian Food Inspection Agency said a preliminary investigation showed that there was no evidence the product was ever imported to Canada.
Chile	none	On 25 September 2008 Chile announced the prohibition of any type of Chinese milky product and food products that contain chinese milk, effective 26 September 2008, and removed more than 2,000 packages with these items in order for analysis in search of melamine, although the Ministry of Health said that there was no evidence "that has contaminated milk in Chile"
European Union	White Rabbit, Lotte Koala biscuits, Ritz Crackers	On 25 September 2008 the EU announced a ban on imports of baby food containing Chinese milk. The European Commission also called for tighter checks on other Chinese food imports;
Hong Kong	various*, incl Yili and Nestlé liquid milk, Cadbury Dairy Milk	Friesland Foods recalled all of its plastic-bottled 'Dutch Lady' milk in Hong Kong; Hong Kong authorities ordered a recall of Yili products after 8 out of 30 tested positive for melamine. Mengniu, whose product tested negative in Hong Kong government tests, and Yili liquid milk was immediately de-listed by supermarket chains after tests showed that contaminated samples had been found on the mainland. Mengniu's CFO attempted to reassure consumers by offering a no-quibble refund on all products, and by drinking liquid milk in front of reporters. He also said that its export products were less likely to be contaminated. Nestlé Dairy Farm Pure Milk was found to contain traces of melamine at 1.4ppm: six products were found by third-party tests to be contaminated, and were withdrawn. The Hospital Authority set up special unit at the Princess Margaret Hospital to deal with potential cases. Hong Kong's first victim was diagnosed on 20 September. A total of 19,000 Hong Kong children were checked, five were diagnosed with kidney problems. At least three of the victims had been living on the mainland, and came into contact with contaminated milk there. On 26 September 2008, Hong Kong government announced it had found traces of melamine in two more products, which were made in mainland China. Heinz, one of the manufacturers identified, recalled their Vegetable Formula Cereal following the government's announcement. Several Cadbury's chocolate products were also recalled, with melamine levels of up to 56ppm (against a legal limit of 2.5ppm).
India	n/a	On 25 September 2008 India announced the ban on import of dairy items, including milk and milk products, from China for three months following reports of contamination leading to deaths among children in that country.
Indonesia	various*, incl M&M's, Oreos, and Cadbury's Dairy Milk (see official test list)	The Health Ministry of Indonesia imposed an import ban on dairy products from China as a preventive measure, while offices of the Indonesian Food and Drugs Supervisory Agency (IFDSA) gave orders to withdraw Chinese dairy products from stores. The government of Indonesia had also withdrawn the local distribution permit given to the only dairy product from China. The nation's health ministry found melamine in twelve products, including products from Mars, Kraft Foods and Cadbury's. Whilst Cadbury's recalled 11 products from Asian markets, Mars disputed the Indonesian tests as being "impossibly high", and inconsistent with results from agencies across Asia and Europe.
Japan	Marudai (recall), Chocolate Pillows, various products	Japan's central government was urged to suspend Chinese dairy imports by regional authorities. All import firms have been instructed by the Japanese government to test dairy imports from China for melamine or face huge fines and penalities.
Laos	various products	On September 28, 2008 the Laotian government has stopped all imports of milk products from China. Products such as milk-flavoured toffees, milk and milk powder that are imported from China to Laos has been added to the banned list. Tests done in the markets of Vientiane revealed two milk products containing melamine.
Macau	various*	On 23 September 2008, a 16-month-old boy in Macau who is said to have been brought up on Heilongjiang-manufactured Nestlé powder was diagnosed with kidney stones. On 30 September 2008 Unilever began recalling Lipton-brand milk tea powder in Macau after finding traces of melamine during the company's internal tests.
Mali	n/a	On 29 September 2008 Mali became the next country to ban Chinese dairy products.
Malaysia	n/a	Malaysia had banned dairy items from China in early 2008 because of foot and mouth disease in Chinese cattle. Although it had not yet ascertained the full extent of products affected, the Malaysian Health Ministry extended the ban to include candies (of which White Rabbit Creamy Candy), chocolates and all foods containing milk on 23 September 2008. Dutch Lady Milk Industries, whose milk in plastic bottles was tested positive in Hong Kong, Macau and Singapore, moved to reassure consumers that the tainted products originated from a factory in China, adding its Malaysian products were unaffected.
Myanmar	Various products	Chinese dairy goods are widely sold in Myanmar but the Government there issued no official warning and locals remain ignorant of the contamination. Yashili and Suncare recalled milk powder exported to Myanmar. On September 30, 2008 the Myanmar government banned on all Chinese milk products throughout the entire country.
New Zealand	n/a	Tatua Co-operative Dairy Co, a large exporter of lactoferrin was alerted that melamine had been detected in its own product. The company confirmed contamination at less than four parts per million (4ppm), saying it would investigate and would test for melamine contamination before releasing goods for sale.
Peru	White Rabbit Candy, various products	On 1 October, 2008 the authorities in Peru began confiscating Chinese milk products from shops mostly in Lima's Chinatown district. Products included White Rabbit Candy, cookies, buns, chocolates and other milk-based foodstuffs. Already five types of milk-based products have been banned in Peru.
Philippines	various products	On 24 September 2008 The Philippines prohibited the importing and sale of Chinese milk. The commerce secretary of Manila asked stores to take Chinese milk products off the shelves and drop them off at state centers for inspection. The customs office said that there will be more strict controls on all Chinese food products. Warnings that some retailers would repack powdered milk for resale were also cascaded. The Philippine government will expand further testing of China milk products to include those from other countries fearing that those may also contain milk ingredients from China. This also resulted in fear of milk shortage in the country. On 3 October, 2008 it was announced by the Philippines government that two Chinese-made milk products being sold in the country tested for melamine. The brands were from Yili and Mengniu companies.
Qatar	White Rabbit candy	Qatar imposed a ban on the import and sale of White Rabbit Candy, a product not officially sold in the state Local distributors reaffirmed that "almost nothing... from China" ever makes it to Qatar, thus dairy and baby food products sold in the states were unlikely to be affected by melamine contamination.
Russia	Milk powder, various products	On 30 September, 2008, Russia banned the imports of dairy products from China. It was reported that Russia authorities have seized two tonnes of imported dairy products that were made in China that contained melamine. On October 3 milk powder containing melamine was discovered in the Russian city of Tomsk.
Singapore	various*, incl White Rabbit, Silang House of Steamed Potato, Dutch Lady	The Agri-Food and Veterinary Authority of Singapore (AVA) found the "Dutch Lady" brand of strawberry flavoured milk manufactured in China to be contaminated with melamine; this product has been recalled and destroyed. White Rabbit Creamy Candy was similarly found to have been contaminated. Supermarket chains in Singapore have taken more than 15 brands of products off their shelves in light of the test results on China milk products. Items include yoghurt, ice-cream, candies and biscuits. Since the recall, smaller grocery stores have seen sales dip by about 20 per cent. By 30 September, the AVA found ten products have been contaminated with melamine.
South Korea	Tatua baby milk, M&M chocolate, Snickers, Kit Kat, various products	The South Korean government declared an official import ban on all Chinese dairy products after traces of melamine were discovered in a sample of the popular Mi Sarang Custard snacks which are distributed by Haitai, but produced in China.. The Korean Food and Drug Administration have ordered all current Chinese dairy products on the market to be recalled and destroyed. Officials found melamine contamination in Nabisco Ritz cheese sandwiches and in rice crackers made by the Chinese company, Danyang Day Further checks by South Korean authorities discovered melamine in milk products imported from New Zealand and produced by Tatua Cooperative Diary Company of New Zealand. The government ordered recalls of M&M's milk chocolate snack, Snickers peanut Fun Size, and Kit Kat chocolate bars after melamine contamination was discovered.
Taiwan	various, Mr. Brown Coffee, Nestle products	On 22 September, Taiwan suspended imports of all mainland Chinese milk products and vegetable-based proteins until the problem of contamination in Chinese milk supplies had been addressed. King Car Food, which used milk powder imported from mainland China, was ordered to recall eight of its products, including soups and some varieties of Mr. Brown instant coffee. On 23 September, Premier Liu Chao-shiuan announced that Taiwan would dispatch a delegation of experts to China on 27 September to better understand the contamination problems. The Department of Health failed four Taiwanese companies' products for melamine; the Taipei City falsely named 14 bakeries as being users of contaminated milk - tests showed that none had used contaminated products. The Liberty Times reported that the bakers were angry that the government had identified the companies and threatened to sue for damage. The United Evening News reported that a two-year-old girl, who had recently arrived in Taiwan from Guangzhou, may be the first victim in Taiwan when she was diagnosed with signs of a hardening kidney on 24 September. One citizen voiced concern that President Ma Ying-jeou's promise for closer ties with China would bring in more tainted Chinese products to Taiwan. Criticism of the Kuomintang administration intensified during the last week of September, after the Minister of the Department of Health, led by Lin Fang-yue raised the acceptable levels of melamine in food products from zero to 2.5 ppm. The public outcry subsequent to the move forced Lin to resign. His successor, Yeh Chin-chuan, announced a return to the original zero-tolerance policy to melamine. The Department of Health forced Nestle to delist six Neslac and KLIM products on 2 October for containing minute traces of melamine, despite the minister said they did not pose a significant health risk. A DPP whip criticised the government's policy policy and testing standards on melamine as being "unclear to nobody". Nestlé issued a statement saying it failed to understand the delisting request. It argued that "the 0.05 ppm detection limit currently applied in Taiwan is up to 50 times below recognized and accepted international standards", and the delisting would cost the company NTD1 billion. On 4 October, Minister of health Yeh Chin-chuang was attacked by six opposition Democratic Progressive Party lawmakers who blamed the Minister for the melamine contaminated milk powder. Yeh Chin-chuang was hospitalized for observation.
Tanzania	milk powder	Tanzania reported on 23 September that it had suspended Chinese dairy product imports and seized about 34 tonnes of milk powder (not baby formula) from China. Tanzania Food and Drugs Authority temporarily stopped issuing of permits for importation and distribution of milk and products containing milk from China, and ordered all businesses with relevant products to surrender their stocks.
Thailand	milk powder	On 30 September, Thai authorities introduced restrictions on Chinese dairy products after discovering traces of melamine on two samples of imported Chinese milk powder. On the previous day itself Thailand impounded about sixty tonnes of imported Chinese milk powder after the discoveries. The company that imported the impounded milk, Dutch Mill stated they had to import milk from China because there was a shortage of supplies from New Zealand.
United Arab Emirates	n/a	On 25 September, United Arab Emirates has enacted a ban on all dairy products in China. All supermarkets and food outlets have been directed to remove the products from their shelves.
United Kingdom	White Rabbit	British retailer Tesco has stopped selling its White Rabbit Creamy sweets and candies in its UK stores.
USA	none	Concerned over the possibility of contaminated milk powder being sold in speciality markets serving the Asian community in the United States, the Food and Drug Administration (FDA) issued an advisory on 12 September 2008, while assuring consumers that no formula approved for sale in the U.S. was made in China. All manufacturers and marketers of baby formula in the U.S. assured the FDA that they received no ingredients from China.
Vietnam	milk powder	On 24 September, Vietnam enacted a ban on all Chinese dairy products after finding melamine in a shipment of 101 tons of powdered milk from China.On 3 September Vietnam health ministry reported that they have discovered melamine in eighteen food products imported China and three other countries in the region. On 4 September, the Vietnam authorities announced that action would be taken to prevent melamine-tainted products from reaching consumers after discovering 23 different product samples tested positive for melamine.

Response

International agencies

The European Food Safety Authority (EFSA) warned that children who eat large amounts of confectionery and biscuits with high milk content could theoretically be consuming melamine at more than three times above prescribed EU safety limits, set at 0.5 mg per kg of body weight. EFSA said that children with a mean consumption of products such as milk toffee, biscuits and chocolate containing contaminated milk powder would not be at risk, and that adults would not be at risk even in the worst case scenarios.

On 26 September 2008 the World Health Organization warned health officials around the world to be alert for dairy products of Chinese origin that could be tainted. Anthony Hazzard, the Western Pacific director of the World Health Organization said countries had been advised by the International Food Safety Authorities (INFOSAN) to focus particularly on smuggled formula.

The WHO, which was only notified on 11 September, asked Beijing why it took so many months for the scandal to become public, and to establish whether failure was deliberate or due to ignorance. WHO's China representative, Hans Troedsson, said the issue of who knew what and when was critical. "It is important to know if information was withheld, where and why it was withheld, was it ignorance by provincial authorities or was it that they neglected to report it? Because if it was ignorance, there is a need to have much better training and education ... if it is neglect, then it is, of course, more serious."

Following a spate of mass national bans, the WHO urged national food safety authorities on 25 September 2008 to test Chinese dairy products for health risks before slapping on import bans or recalls. WHO and UNICEF also jointly decried the "deliberate contamination of foods intended for consumption by vulnerable infants and young children", calling it "particularly deplorable."

The WHO referred to the incident as one of the largest food safety events it has had to deal with in recent years. It says the crisis of confidence among Chinese consumers would be hard to overcome. It saw regulation failing to keep pace with the rapid development of the food and industrial production as opening the gates to all types of misbehaviour and malfeasance. The spokesman said that the scale of the problem proved that it was "clearly not an isolated accident, [but] a large-scale intentional activity to deceive consumers for simple, basic, short-term profits."

On 24 September 2008 WHO Director-General Margaret Chan criticized Asian mothers for not breastfeeding babies, depriving them of the best nutrition offered by nature, at the same time exposing babies to the toxic effects of melamine. Director-General Margaret Chan recommended mothers should go back to breastfeeding during these melamine contamination milk scandal. ``I don't know why young women these days don't breastfeed........We need to try our very best to tell them the difference. Of course breastfeeding is the best food for babies." Dr. Margaret Chan said.
Dr.Magarate Chan, the first person from China to lead a United Nations agency, said the melamine-in milk scandal shows ``the impact and power of globalization in food distribution and ``highlights the importance of seamless cooperation from farm to consumer. Dr. Chan said:``Food and drug safety is an issue not only for developing countries -- it happens worldwide......Even some of the substandard drugs are made in developed countries.

Chinese public

Anger at Sanlu

The case has brought anger and resentment at milk producers, and has sown uncertainty and confusion among the population: queues have formed outside Sanlu's offices for refunds. The Sanlu website was hacked several times and its name as displayed in the header bar changed to 三聚氰胺集团 ("The Melamine Group") in a play of words on the character "三" (number 3), which is the first word of Sanlu's Chinese name: 三鹿 (Three Deer); "Melamine" was also added as a product name by a hacker. As has been increasingly common practice, netizens have vented their anger on Internet bulletin boards.

The State Council Party and State Organisations Special Food Supply Centre... is supported by the State Council Logistics Base, Central Security Bureau farms, and supply bases spread over all 13 provinces, municipalities... and autonomous regions. These bases supply the 94 ministries’ and commissions’ veteran cadres with high quality organic food products... [Our] products accord with the highest standards. ...Everyone knows that at present average production facilities use large quantities of chemical fertilizers and pesticides. Antibiotics and hormones are used in the raising of animals. Aquatic animal products are raised in polluted waters. All of these toxins end up in the final food products (all kinds of produce, meat, dairy products etc.). It goes without saying that these are harmful when consumed by humans. Zhu Yonglan, Director of the CGOSFSC - speech to Shandong KR Biomedical, 18 August 2008

Before the government offered free medical treatment, some parents had reportedly spent small fortunes on medical care for their sick children.

Anger at political leaders

There is growing resentment that country's leaders are not troubled by the food security turmoil faced by ordinary citizens: in a speech delivered by Zhu Yonglan (祝詠蘭), Director of the State Council Central Government Offices Special Food Supply Centre (CGOSFSC) in August 2008, Zhu disclosed that her firm which was set up in 2004 to source high-quality, all-organic foodstuffs from farms working under the strictest guidelines, for supply to top political leaders, their families and retired cadres.

Ordinary Chinese are asking whether the government ever intends to do more than just apologise, after Premier Wen Jiabao apologised, saying he felt "extremely guilty" about the poisoned milk products, just as he had previously asked the people's pardon for the deaths of coal miners, the polluted drinking water, and train passengers stranded by the authorities' inadequate response to the severe snowstorm during the New Year.

Author Qin Geng (秦耕) said:"The big picture in this case was the interest of one-party rule above anything, not that they would put the safety of the people first" Qin concluded what the Chinese public were told by the state-controlled media the contamination of milk is a well orchestrated process, and they are "very sad, very frightened and very concerned."

Quest for milk substitutes

Poorer consumers reliant on local milk powder, which is approximately half the price of imported brands, have been left without alternatives to feed their children. Many have now lost faith in local brands, and others are uncertain which brands are safe. Supermarket shelves have been swept bare from product recalls. Shops in Hong Kong have reported a rush for imported formula from cross-border shoppers, and some retailers are reportedly rationing their stocks. Mainlanders have also been rushing to import milk powder from Kinmen. Wet nurses are enjoying a resurgence in popularity in major cities.

Other third parties

Hu Xingdou (胡星斗), a professor at Beijing Institute of Technology, said: "There hasn't been an effort to establish a moral foundation to the market economy, and this incident is the inevitable result." Hu urged the leadership to transform the way of thinking, to repair the system, rather than merely concentrating on individual problems as they arise. An op-ed in the New York Times compared this to the "swill milk scandal" in New York in the 1850s in which 8,000 children reportedly died from milk from cows fed swill, which was then whitened with plaster of Paris, thickened with starch, eggs and hued with molasses. The underlying regulatory vacuum in the fast-growing economy was identified as the problem. "In such get-rich-quick societies, there is a huge temptation to tamper with food, particularly when margins are low. The rewards are instant."

The dairy scandal raises the core question of whether the ruling Communist Party is capable of creating a transparent, accountable regulatory structure within a one-party system. Time Magazine cited many analysts saying the party’s need to maintain control of the economy and of information undermines the independence of any regulatory system. A Beijing-based consultancy, Dragonomics, concurred that "the problem was rooted in the Communist Party’s continued involvement in pricing control, company management and the flow of information". Independent regulation was lacking or ineffective as local industries' were so intertwined with local officialdom.

The Times noted the dichotomy that state media have admitted that while one child in 20 in Shanghai may have kidney damage as a result of drinking contaminated formula milk, on the other hand, "like the emperors of old, the new communist elite enjoy the finest produce from all over China, sourced by a high-security government department."

Lawyer Bill Marler, speaking at at a food safety conference in Beijing, said that this food scare has harmed the "made in China" brand abroad. He remarked: "If this product had gotten into the United States, it would have been 'game over' for a lot of products in China." David Bandurski, journalist and researcher at China Media Project , suggested that the current Chinese media failed the Chinese society due to the crippling controls by the state combined with "runaway commercial greed". Bandurski said that Chinese censorship "suppresses information that is critical to the well-being of ordinary Chinese."

Access Asia, a Shanghai-based consumer consultancy, said Fonterra was a classic example of western executives in China "believ[ing] advice in business books that they must avoid making their local partners 'lose face' at all costs." It suggested that Fonterra paid a heavy price in write-offs, a wrecked business and public condemnation.

Chinese government

Media Statements

Behind the scenes, mainland media was ordered to tone down coverage of the unfolding scandal to prevent unrest. News editors have been ordered to adhere to the official copy of Xinhua. Traditionally, media knows to avoid negative news coverage, and CCTV has shifted reporting emphasis on the forthcoming launch of Shenzhou VII. The announcement of the AQSIQ test results was relegated to the final item on the CCTV evening news.

A group of 90 lawyers from Hebei, Henan and Shandong - the three worst affected provinces - had made pro bono offers to assist victims, and a list of their names was published. Organisers of the group declared that they had come under pressure from officials to not to get involved in the issue. The Beijing Lawyers' Association, a part of the Communist Party apparatus, asked its members "to put faith in the party and government". Other members of the group have reportedly received less subtle requests. Authorities are said to fear social unrest if law suits are unleashed. Pro-Beijing Hong Kong journal Ta Kung Pao reported that central authorities, fearful of the effect of mass law suits, held a meeting with lawyers' groups on 14 September, asking them to "act together, and help maintain stability" 「服從大局，保持穩定」

Formally, the State Council released its initial findings, and a top-level official apology of the incident both came on 21 September. Wen Jiabao apologised while visiting victims in hospitals.

This incident made me feel sad, though many Chinese have been understanding. It disclosed many problems for government and company supervision of the milk sources, quality and marketing administration... The government will put more efforts into food security, taking the incident as a warning. What we are trying to do is to ensure no such event happens in future by punishing those leaders as well as enterprises responsible. None of those companies without professional ethics or social morals will be let off.

— Wen Jiabao, China's Premier (21 September 2008)

After the speech by Zhu Yonglan of the CGOSFSC became widely circulated by citizens on the internet, there was much criticism of leaders' double standards. On 26 September, Xinhua issued a brief statement, in Chinese, denying the existence of the Centre, the award, or any person named Zhu Yonglan, saying these were "purely rumours".

Government Action

According to a senior quality inspectorate official, the government aims to establish nearly 400 product testing centres within the next two years, and 80 of these will be food testing centres. Working groups have been established in nearly every single province in order to set up new food testing centres and replace outdated equipment.

On 24 September 2008 China's newly appointed AQSIQ chief Wang Yong issued a statement:"the government will carry out 'forceful' measures to deal with the chemical contamination", it's inspectors had removed 7,000 tonnes of melamine contaminated dairy products from shops all over China.

In what is believed to be his first ever mention of the contamination incident, Chairman Hu Jintao General Secretary of the Communist Party of China Central Committee, said on 1 October 2008 :"Food safety is directly linked to the well-being of the broad masses and the competence of a company.....Chinese companies should learn from the lessons of the Sanlu tainted milk powder incident." On 4 October 2008 China's Ministry of Agriculture said it had made an emergency rescue plan with the Ministry of Finance to give special subsidies to the country's dairy farmers, who have suffered from shrinking demand after the tainted milk scandal. 14 local governments had already come up with policies to stabilize the dairy industry. More than 150,000 officials to overhaul milk-collecting stations and cow feed supply chains. Altogether 18,803 milk-collecting stations had been registered and checked by these officials. The ministry has investigated 98 dairy producers and farms, banned 151 illegal companies and transferred to the police three manufacturers of feedstuff that contained melamine

See also

• Test results from several government agencies
• 2007 Chinese export recalls
• 2007 pet food recalls
• Chinese protein export contamination
• Toxic cough syrup