The 2008 Chinese milk scandal is a broad food safety incident in China. The scandal involved milk and formula along with foodstuffs and other components mixed with melamine. Of the approximately 300,000 victims in China, six babies die of kidney stones and other kidney damage and about 54,000 babies are hospitalized. These chemicals give the appearance of a higher protein content when added to milk, leading to a protein deficiency in the formula. In a separate incident four years earlier, dilute milk has resulted in 12 infant deaths due to malnutrition.
The scandal broke out on July 16, 2008, after sixteen babies in Gansu Province were diagnosed with kidney stones. The babies were fed formula milk produced by Sanlu Group based in Shijiazhuang. After initial focus on Sanlu - the market leader in the budget segment - government inspection revealed the problem exists at a lower level in the products of 21 other companies, including the joint venture Arla Foods-Mengniu known as Arla Mengniu, Yili, and Yashili.
The issue raises concerns about food security and political corruption in China, and undermines the reputation of China's food exports. At least 11 countries stop all imports of Chinese dairy products.
A number of criminal prosecutions were conducted by the Chinese government. Two people were executed, one was given the death penalty, three received life sentences, two received sentences of 15 years in prison, and seven local government officials, and the Director of Quality Supervision, Inspection and Quarantine Administration (AQSIQ) were dismissed or forced to resign.
The World Health Organization calls this incident one of the biggest food safety events to be faced in recent years, and that a crisis of confidence among Chinese consumers will be difficult to overcome. A spokesman said the scale of the problem proved it was "clearly not an isolated accident, [but] a deliberate large-scale activity to deceive consumers for the sake of simple, basic, and short-term gains."
In late October 2008, counterfeiting similar to melamine was found in eggs and possibly other foods. The source was tracked for melamine added to livestock feed, although a ban was imposed in June 2007 following an animal feeding scandal that was exported to the United States.
In 2012, Jiang Weisuo, a 44-year-old general manager from a dairy factory in Shanxi province, is rumored to have been killed in the city of Xi'an. It was Weisuo who first reminded the authorities of the scandal. According to Xi'an Evening News, Jiang died in hospital on November 12th due to a knife wound caused by his wife, Yang Ping, but the murder his wife claimed was later reported to be untrue.
Video 2008 Chinese milk scandal
Melamine
Melamine is used to produce melamine-formaldehyde resins, a type of plastic known for its refractory properties and is commonly used in countertops, dry-erase boards, etc. Melamine itself is rich in nitrogen and is sometimes illegally added to food products to increase its protein content. It has also been used as a non-protein nitrogen, appearing in soy foods, corn gluten meal and cottonseed flour used in animal feed. Melamine is known to cause kidney failure and kidney stones in humans and animals when it reacts with cyanuric acid in the body. The use of melamine in food production is not approved by WHO or national authorities.
The Kjeldahl and Dumas methods used to test protein levels fail to distinguish between nitrogen in melamine and naturally occurring in amino acids, allowing forged protein levels. Introduced into milk, it can help hide the false dilution with water. Melamine staining of food products also made headlines when pet food was withdrawn in Europe and the US in 2007.
Source of contamination
The World Health Organization (WHO) says melamine can be found "in a variety of dairy and milk products at various levels, from the range of ppb to low ppm." One academician suggested cyromazine, a pesticide melamine derivative commonly used in China for a long time, absorbed into plants such as melamine; because it may have long been present in products such as poultry, eggs, fish, and dairy products. It is not known where in the supply chain melamine is added to milk. These chemicals are insoluble in water, and must be mixed with formaldehyde or other chemicals before they can be dissolved in milk.
Due to poor farming, milk production and storage and demand far outstrips inventories, the use of other harmful hazardous chemicals such as preservatives and hydrogen peroxide has been reported by independent media as a matter of course. Quality tests can be falsified with additives: peroxides added to prevent milk from worsening; industrial vegetable oils are emulsified and added to increase fat content; Whey is used to increase lactose content. However, the procurement chain is also involved, as dairy agents are often politically connected. Farmers report sellers, over the years, visiting farms in areas of custody that consume "protein powder" additives, which are often delivered in 25kg (55 lb) brown paper bags each. The new version of "protein powder", which is able to deceive the dough for protein content, began peddling about two years ago. Thus, farmers add untreated melamine contaminants, or turn a blind eye to counterfeiting milk to ensure their milk is not rejected. Large dairy producers are involved in producing "milk tubes".
Caijing reported in 2008 that "drinking fresh milk with additives like melamine" is no longer a secret to the Hebei dairy farmers for the past two years. Due to the fierce competition for supply, and higher prices paid by Mengniu and Yili, Sanlu's procurement becomes wedged; the inspection system became compromised "in early 2005 and enabled the milk collection stations to adopt unscrupulous business practices", while government oversight was "practically non-existent".
Caijing also reported melamine in tainted milk may come from melamine scrap for Ã, Â ¥ 700 per ton - less than a tenth of the price of 99% melamine pure industrial grade. The melamine production process produces pure melamine by crystallization; melamine is left in the parent liquid is not pure (70%) and can not be used for plastics, so thrown away. It is said that the melamine content of Sanlu's milk formula is the result of disruption by adding low-cost vegetable proteins (such as low-grade soy powder), and large amounts of melamine as fillers. Scrap melamine contains impurities such as cyanuric acid that form insoluble crystals (melamine cyanuric) rather than melamine alone, exacerbating the problem.
Victim
On September 17, 2008, Health Minister Chen Zhu claimed contaminated milk formula had made more than 6,200 sick children, and that more than 1,300 others, mostly newborns, remained hospitalized with 158 suffering from acute renal failure. On September 23, about 54,000 children were reported ill and four died. Another 10,000 cases were reported from the province on 27 September. A World Health Organization official said 82% of sick children were 2 years old or below. The Hong Kong Food Safety Center says that 99 percent of victims are under 3 years old. Ten Hong Kong children were diagnosed with kidney problems, at least four cases detected in Macau, and six in Taiwan. Non-human victims include cubs and two baby orangutans fed Sanlu baby formula at Hangzhou Zoo.
The government said on Oct. 8 it would no longer publish the latest figures "because this is not a contagious disease, so it's not absolutely for us to publicize it." Reuters gathered figures reported by local media across the country, saying it was close to 94,000 by the end of September, excluding the city. In particular, 13,459 children have been affected in Gansu, Reuters quoted Xinhua as saying Henan has reported more than 30,000 cases, and Hebei also has nearly 16,000 cases.
In late October, the government announced health officials had surveyed 300,000 Beijing families with children less than 3 years old. This reveals about 74,000 families have a child who has been given melamine-tainted milk, but did not disclose how many children had fallen ill as a result.
Because months before the scandal was revealed, the media suggested that official figures tend to be underestimated. Kidney stones in babies begin to be reported in several parts of China in the last two years. A number of unrecognized cases were officially reported by the media. However, an unwarranted death can be denied compensation. On December 1, Xinhua reported that the Health Ministry revised the toll to more than 290,000 with 51,900 hospitalized; authorities acknowledged receiving reports of 11 suspected deaths from melamine-contaminated powdered milk from the province, but officially confirmed three deaths.
On the characterization and treatment of urinary stones in affected infants, the New England Journal of Medicine printed an editorial in March 2009, along with reports on cases from Beijing, Hong Kong and Taipei.
Bladder specimens were collected from 15 cases treated in Beijing and analyzed as unknown objects for their component at the Beijing Institute of Microchemistry using infrared spectroscopy, nuclear magnetic resonance, and high performance liquid chromatography. The results of the analysis showed that stones consist of melamine and uric acid, and the molecular ratio of uric acid to melamine is about 2: 1.
In a study published in 2010, researchers from Peking University studying ultrasound images of infants who fell ill in 2008 pollution were found when most of the children in rural China recovered, 12 percent still showed kidney abnormalities six months later. "The potential for long-term complications after exposure to melamine remains a serious concern," the report said. "Our results indicate the need to further follow up affected children to evaluate the potential long-term impact on health, including kidney function."
Maps 2008 Chinese milk scandal
Company
Produk yang terkontaminasi ditemukan di tes Cina Aqsis termasuk produk susu formula bayi yang diproduksi oleh perusahaan-perusahaan berikut, agar konsentrasi tertinggi ditemukan. Shijiazhuang Sanlu Group, Shanghai Panda Dairy, Qingdao Shengyuan Susu, Shanxi Gu Cheng Dairy, Jiangxi Guangming Yingxiong Dairy, Baoji Huimin Susu, Inner Mongolia Mengniu Dairy, Torador Susu Industri (Tianjin), Guangdong Yashili Group, Hunan Peiyi Dairy, Heilongjiang Qilin Susu, Shanxi Yashili Dairy, Shenzhen Jinbishi Susu, Scient (Guangzhou) Bayi Gizi, Guangzhou Jinding Produk Susu Pabrik, Inner Mongolia Yili Industrial group, Yantai Ausmeadow nutrisi, Qingdao Suncare Gizi Teknologi, Xian Baiyue Dairy, Yantai Leilei Dairy, Shanghai Baoanli Dairy, dan Fuding Chenguan Dairy.
Sanlu
The scandal began with the disclosure of contamination of Sanlu dairy products. New Zealand's Fonterra dairy cooperative, which owns a 43% stake in Sanlu, said they were on standby for melamine contamination on Aug. 2 (almost a month before the issue became public), saying it has been pushing hard for a public recall. Despite direct trade withdrawals, Fonterra said that local administrators refused formal withdrawals. A director of Fonterra has given San Lu's management a document detailing the level of melamine permitted by the European Union, but Fonterra's chief executive Andrew Ferrier stated that it was not long before Fonterra said a small amount of melamine was acceptable.
Alerts are ignored
From 2005 to 2006, agent Jiang Weisuo of the Shaanxi Jinqiao Milk Company in northwestern China reportedly publicly discussed his fears about unauthorized substances being added to competitor's milk. His complaints to regulators and milk makers in 2005 and 2006 never produced any results; the story was taken by China Central Television, which contains a full report with ongoing counterfeit records, but Shaanxi's Quality and Technical Supervision Bureau says they failed to find any evidence of error.
The Quality Supervision, Inspection and Quarantine Administration (AQSIQ) bulletin boards show the rare occurrence of kidney stones in children - all caused by Sanlu's milk formula - characterized by at least one community member in June 2008 and by urologists at the child's hospital on July 24, 2008 There is no definitive answer received. The pediatrician, who specifically requested AQSIQ to refer his observations to an epidemiologist, was asked to refer his request to the health department.
In June, Jiangsu media reported a two-month spike in the number of infants diagnosed with kidney disease; in July, the parents of a sick baby in Hunan questioned Sanlu's milk powder and complained to AQSIQ. Gansu Province sent a report to the Ministry of Health on July 16 to remind that one local hospital has identified an increased incidence of kidney disease among babies in the previous month, and that most of the victims have consumed Sanlu baby formula. The health ministry sent investigators to Gansu in early August.
Closed allegations
Fonterra told the New Zealand government on Sept. 5 and three days later, Prime Minister Helen Clark called on Beijing officials to direct alert. News reports began to circulate in China on September 9, the news was broadcast internationally a day later by Reuters. State-controlled media reports initially did not identify the companies involved, posting on Tianya.cn, a Chinese social portal, named Sanlu as the culprit. Initially Sanlu denied the allegations.
The State Council investigation revealed Sanlu began receiving complaints about sick babies since December 2007 but did not test until June 2008. It said the leading government official in Shijiazhuang City had failed to report contamination to provincial and state governments (until 9 September). ) violates the rules about reporting major incidents involving food safety. According to People's Daily, Sanlu wrote a letter to the Shijiazhuang city government on August 2, 2008, asking for help to "improve media control and coordination, to create a favorable environment for corporate recalls." product problems... to avoid whipping problems and creating a negative influence in society. "
According to accounts confirmed by media reports and health officials, the company is trying to buy criticism and cover up the contamination. In a memo dated August 11, Beijing-based public relations agency Teller International advised Sanlu to seek cooperation with major search engines to censor negative information. The agency reportedly repeatedly contacted the main account staff at Baidu and proposed a budget of  ¥ 3 million (US $ 440,000) to filter out all negative news. After the memo began to circulate on the internet, Baidu denounced, in a communiqué on September 13, 2008, the agency's approach on several occasions, saying that the proposal was strongly rejected, for violating their company's principles of unbiased and transparent reporting.
Helen Clark said about the local government: "I think the first tendency is to try and put a towel on it and deal with it without an official withdrawal." Western media speculated China's desire for a perfect summer Olympic Games contributed to the delayed withdrawal of baby milk, citing the allegedly issued guidelines for Chinese media reporting food safety issues, such as cancer-causing mineral water, was "off limits" even though the central government refused to issue this guideline. The vice governor of Hebei province said his government was only informed by Shijiazhuang on September 8. However, a journalist at Southern Weekend wrote an investigation report in late July for the publication of babies who fell ill after consuming baby formula from Sanlu. Six weeks later, senior editor Fu Jianfeng revealed on his personal blog that this report has been suppressed by the authorities, as the Beijing Olympics are imminent. While this was happening, Sanlu was honored in a national awards campaign called "30 Years: Brands That Have Changed Chinese Lives." The press release on the awards, written by the senior public relations manager at Sanlu, was authorized as news content on the People's Daily and in other media.
Sanctions
On September 15, the company issued a public apology for contaminated powdered milk; Sanlu was ordered to stop production, and to destroy all products that were not sold and withdrawn. Authorities reportedly confiscated 2,176 tonnes of milk powder in the Sanlu warehouse. An estimated 9,000 tons of products have been recalled.
Tian Wenhua, Sanlu's Chairman and general manager and Secretary of the Sanlu Communist Party chapter were removed from his party and functional positions during an extraordinary meeting of the firm committee of Hebei province of the CCP; four Shijiazhuang officials, including the deputy mayor responsible for food and agriculture, Zhang Fawang, were reportedly removed from the office. Shijiazhuang Mayor Ji Chuntang resigns on September 17th. Li Changjiang, the minister in charge of AQSIQ, was forced to resign on September 22 after a review of the State Council concluded he was responsible for "oversight in control". Investigators â € <â €
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 suspected of selling contaminated milk to Sanlu, and six were charged with selling melamine. Three hundred kg of suspicious chemicals, including 223 kg of melamine, were confiscated. Among those arrested were the two brothers who run a milk collection center in Hebei for allegedly supplying three tons of milk purified daily to the dairy factory; the owner of another collection center that sells seven tons of milk per day to Sanlu, was arrested, and the operation was closed.
Zhang Yujun (aka Zhang Haitao), a former dairy farmer from Hebei, produced more than 600 tons of melamine and maltodextrin "protein powder" mixture from September 2007 to August 2008. He and eight other traders, dairy farmers and dairy buyers who bought the powder was captured in early October, bringing the total to 36.
During the week of December 22, 2008, 17 people involved in producing, selling, buying and adding melamine in raw milk were tried. Tian Wenhua, a former Sanlu general manager, and three other corporate executives appeared in court in Shijiazhuang, accused of producing and selling melamine-tainted milk. According to Xinhua, Tian pleaded guilty, and told the court that he knew complaints of contaminated milk from consumers in mid-May. He then seems to lead the work team to handle the case, but did not report it to the Shijiazhuang city government until 2 August.
The Intermediate People's Court in Shijiazhuang executed Zhang Yujun and Geng Jinping, and Tian Wenhua to live in prison on January 22, 2009. Zhang was convicted of producing 800 tons of contaminated powder, Gang to produce and sell toxic food. Geng Jinping runs a milk production center that supplies milk to Sanlu Group and other dairies. The China Daily reported the Gang had knelt on the floor of the courtroom and begged the families of the victims to forgive during the trial. The court also sentenced Sanlu's deputy chiefs Wang Yuliang and Hang Zhiqi, fifteen and eight years in prison respectively, and former manager Wu Jusheng to five years. Some of the defendants appealed.
Zhang Yujun and Geng Jinping were executed on November 24, 2009.
Effects on company
The value of the company fell because of the scandal. On September 24, Fonterra announced it had written down its investment carrying amount of $ 139 million (two thirds), reflecting the cost of product withdrawal and the Sanlu brand damage due to "criminal contamination of milk." On Sept. 27, China Daily reported Sanlu almost bankrupt, and possibly taken over by Beijing Sanyuan Food Company. The company also faces lawsuits from parents (see Anger at Sanlu ).
The Beijing Review says Sanlu hopes to pay a compensation claim of ¥ 700 million, and it becomes clear the company will be broken up and sold.
On December 25, the Shijiazhuang court accepted a request for bankruptcy of creditor against Sanlu. Media commentators expect the Sanlu distribution network to be sold.
Chinese majors
On Sept. 16, AQSIQ released a sample test of 491 batches of products sold by all 109 companies that produce infant formulas. It said all 11 samples from Sanlu failed melamine tests. Sanlu, whose product is sold at half the market equivalent, recorded the highest contamination rate among all samples tested, at 2,563 mg/kg or parts per million ("ppm"). Contaminated samples were found among 21 other suppliers, where concentrations ranged from 0.09 to 619.00 ppm.
There is melamine contamination in 10% of melamine milk samples from Mengniu and Yili, and 6% of those from Bright Dairy. In the discovery of contamination, the three major producers were all stripped of their status as 'Chinese national brands'. Yili, Mengniu, and Bright Dairy & amp; Food Co. considering the tainted milk powder and apologizing in a separate statement. Mengniu remembers all baby formula, and his share trading on the Hong Kong Stock Exchange was suspended on September 17th. Shares of other dairy companies dropped strongly the next day. Mengniu CFO seeks to reassure consumers by offering unreasonable refunds on all products, and by drinking liquid milk in front of reporters in Hong Kong. He also said that its export products are less contaminated.
On Sept. 30, AQSIQ announced further test results of 265 batches of milk powder produced by 154 different companies before September 14, where 31 batches were produced by 20 domestic dairies contaminated with melamine.
On Dec. 1, the Chinese Ministry of Health issued an update, saying nearly 300,000 babies fell ill after consuming melamine-tainted infant formula. In response to a spike in contaminated Chinese products, the US Food and Drug Administration opened its first overseas inspection office in November 2008, with bureaus in Shanghai, Beijing and Guangzhou.
Trade and industry impact
Chinese Industry
The State Council ordered product testing of all milk producers, and for this purpose, about 5,000 inspectors were dispatched. The Chinese market has grown at an average annual rate of 23% since 2000. In 2006, milk production reached 30 million tons, ten times the volume a decade earlier. It was worth about 122 billion (US $ 18 billion) in 2007, and consumers have lost confidence in the industry.
These events have revealed the often-discussed relationship between local businesses and local governments. In addition to tax revenues for local authorities - Sanlu contributed ¥ 330 million in 2007, many companies invited local officials to become "silent partners" in their companies - in return for "protection" at the political level; Sanlu's former chairman, Tian Wenhua, was appointed honorary representative for the Provincial People's Congress. The scandal also highlights the problem of inadequate production volume structural, inherent quality problems, and poor production methods. The Inner Mongolia region produces more than a quarter of China's milk, and Mengniu and Yili have invested millions of dollars to build a sophisticated milk facility in its capital, Hohhot. Companies still rely on small-scale farmers for more than 90% of their production due to the limited capacity of modern facilities. Both companies are said by farmers and agents to buy milk that fails quality tests, because only two-thirds of the normal price. The new policy came into force on September 17 to stop the practice.
Consumer panels resulting from contaminated milk reduce the demand for dairy products, causing hardship for over 2 million Chinese farmers who have no place to sell their milk and there is no means to support their dairy cows. Farmers reportedly poured milk and sold cattle to the market without a buyer.
Since the scandal erupted, sales fell 30-40% comparatively, according to the China Milk Association. The Association estimates the financial effects of the Ã, ¥ 20 billion order, and estimates that the trust may take up to two years to be fully restored. In an effort to shore up sales and maintain their market share, dairies have canceled their collective agreements not to use promotions to counter the sales decline: big discounts (including BOGOF), free gifts and other selling point incentives offered to buyers. Their new product is labeled "security check pass" to ease consumer fears.
Foreign operations in China
Mengniu-Arla, a joint venture between Danish/Swedish cooperatives Arla Foods and Mengniu halted production on September 16, 2008 after three of 28 tests taken from Mengniu showed melamine traces; the contaminated batch has been recalled.
Mengniu, a milk supplier to Starbucks, was replaced by Vitasoy when the coffee retailer avoided milk for soy milk in Chinese operations. KFC also delayed the sale of Mengniu milk.
Tokyo-based Lotte Group, a major snack maker, remembers the Koala pastries in Hong Kong and Macau due to contamination, and promises to "look deeply at all the details of the manufacturing process" to maintain customer trust. This range is also ordered from Dutch and Slovak racks. The Chocolate Pie was confiscated when the sample tested positive in Malta.
On September 29, the British cotton candy group, Cadbury was forced to lift 11 of its chocolate products in China on suspicion of melamine, which caused it to close its three factories in China. The recall affects the Chinese market, as well as Taiwan, Hong Kong, Japan, Korea and Australia. Testing in Hong Kong found large amounts of melamine in Chinese-made products Dairy Milk .
On Sept. 30, Unilever recalled its powdered milk powder after a company internal examination found traces of melamine in Chinese powder milk used as a material. Heinz recalls the case of baby cereals in Hong Kong after finding they contained melamine. The NestlÃÆ'Â © n factories in Heilongjiang are also involved: The Taiwan Health Department is forcing the delisting of six Neslac products and KLIM on October 2 because it contains traces of melamine, even though the Minister says they do not pose any health risk. significant.
Since the milk crisis broke out, NestlÃÆ' © said it has sent 20 specialists from Switzerland to five factories in China to strengthen chemical testing. On October 31, it announced the opening of a $ 10.2 million Beijing research and development center to "serve as a base and reference in food safety for Nestlà ©  in Greater China." NestlÃÆ' © Chief Technology Officer says the center is equipped with "highly sophisticated analytical tools to detect trace amounts of unwanted residues and compounds such as melamine or veterinary medicines or natural toxins".
Olympics
There are fears that dairy products consumed during the 2008 Summer Olympics may have been contaminated. Li Changjiang, Director of AQSIQ at that time assured the international community that all foods, including dairy products, are safe. "We are taking special quality management measures aimed at food supply for the Olympics."
Outside of mainland China
PRC Customs said the export of milk and egg products in 2007 was worth US $ 359 million, year-on-year increase of 90 percent. As news of melamine contamination begins to circulate, at least 25 countries stop importing Chinese dairy products. A number of countries have imposed a blanket ban on Chinese dairy products or derivatives - among them Bangladesh, Bhutan, Brunei, Burundi, Cameroon, Chile, Colombia, Dominican Republic, Gabon, India, Cote d'Ivoire, Maldives, Mali, Mexico, Nepal, Papua New Guinea, Paraguay, South Korea, Suriname, Tanzania, Togo and the United Arab Emirates - joined forces with Indonesia, Taiwan, Japan, Singapore and Malaysia which also imposed a special ban on Chinese dairy products tested positive for melamine.
Hong Kong
The scandal destroyed all confidence in locally produced baby formula, and since then many Shenzhen residents and parallel merchants are traveling across the border to buy milk powder from Hong Kong shops. Lower confidence in Chinese production, combined with relaxation of visa requirements for mainland residents, has resulted in severe shortage of infant formula deficiency in Hong Kong for a long time. Because of the great public outrage, the 2013 Amendment of Import and Export (Amendment) was passed in Hong Kong, prohibiting the export of unlicensed formula powders, including soy milk and soy powder for infants and children under 36 months. According to the HK government, the regulation does not apply to "exported powdered formula in personal trunk accompanied by a person aged 16 years and above who leaves Hong Kong if the person does not leave Hong Kong in the last 24 hours and the formula is not valid not exceeding 1.8 kg in total net weight. "
Although the Hong Kong government imposed a strict 2-tin limit on export of formula milk in March 2013, spurring price differences caused by the loose land and customs sales tax, trading activities including powdered milk continued, exacerbating the Hong Kong-Mainland conflict. The catchment area for traders has spread from Fan Ling and Sheung Shui south to Yuen Long and Tuen Mun, causing localist groups like Civic Passion and Hong Kong Indigenous to take to the streets in direct action in 2015.
European Union
On September 25, 2008, the EU announced a ban on imports of baby foods containing Chinese milk. The European Commission also called for a closer inspection on the importation of other Chinese foods; isolated contaminated products were found in the Netherlands, and the French authorities ordered all Chinese dairy products from shelves; Tesco removes White Rabbit as a preventive measure from his shop in the UK.
United States Food and Drug Administration
In the United States, unaffected by fear, the US distributor of White Rabbit candies recalled the product when samples found in Hartford showed melamine traces. Bright Foods candy maker and subsidiary, Guan Sheng Yuan, issued a recall to the 50 countries it exported.
The US Food and Drug Administration said that foods containing melamine under 2.5 parts per million generally do not cause concern, its scientists "currently can not build melamine levels and melamine-related compounds in formula that do not improve public health problems".. On November 12, 2008, the FDA issued a general warning against all finished food products from China, saying that information received from government sources in a number of countries shows the variety and variety of products from different manufacturers have been produced using contaminated milk is a recurring problem. At the end of November, after the FDA found traces of melamine in one Nestle baby product and one baby product Mead Johnson, the FDA concluded melamine or cyanuric acid alone, "at or below 1 part per million in infant formula does not increase public health problems" in infants.
Response
International agencies
The European Food Safety Authority (EFSA) warned that children who eat large quantities of sweets and biscuits with high milk content can theoretically consume melamine more than three times above the prescribed EU security limit (0.5 mg/kg body weight). EFSA says children with average consumption of products such as toffee milk, biscuits and chocolate containing contaminated powdered milk will not be at risk, and adults will not be at risk even in the worst-case scenario.
The World Health Organization, newly notified on September 11, asked Beijing why it took months until the scandal became public, and to determine whether the failure was deliberate or out of ignorance. WHO representative in China, Hans Troedsson, said the problem who knows what and when is critical "... Because if it is ignorance, there is a need to have training and education that much better... if it is ignored, then it is, of course, more serious. "
Following a spate of national mass ban, the WHO urged national food safety authorities on September 25, 2008 to test Chinese dairy products for health risks before slapping import or recall bans. WHO and UNICEF also jointly criticized "deliberate and intentional food contamination aimed at... vulnerable babies and small children." On 26 September, WHO warned health officials around the world to be wary of Chinese dairy products which can be polluted. Anthony Hazzard, director of the Western Pacific World Health Organization says countries have been advised by the International Food Safety Authority (INFOSAN) to focus primarily on smuggled formulas.
The WHO called the incident one of the biggest food safety events to be faced in recent years. It said the crisis of confidence among Chinese consumers would be difficult to overcome. It sees regulations failing to keep pace with the rapid development of food and industrial production as opening gates for all kinds of bad behavior and irregularities. The spokesman said the scale of the problem proved it was "clearly not a separate accident, [but] a deliberate large-scale activity to deceive consumers for simple, basic, and short-term gains."
WHO Director-General Margaret Chan reminded Chinese mothers that infants who are not breastfed get the best nutrition offered by nature, while at risk of melamine effects. He added: "We should try our best to tell [the mother] the difference [between breast milk and formula] Of course breastfeeding is the best food for babies." Chan said the melamine-in-milk scandal shows "the impact and strength of globalization" in food distribution and highlights "the importance of seamless cooperation from agriculture to consumers".
Chinese Public
Anger at Sanlu
This case has brought anger and resentment towards milk producers and sprinkled uncertainty and confusion among the population. Queues formed outside of Sanlu office for refund. The Sanlu website was hacked several times and its name displayed in the header bar changed to ?????? ("The Melamine Group") in a play of words on the character "?" (number 3), which is the first word of the Sanlu Chinese name: ?? (Three Deer); "Melamine" is also added as a product name by the hacker. As practice gets more and more common, web users vent their anger on internet bulletin boards. The prevalent food threat has increased the number of online parodies that netizens are circulating. Those inspired by Sanlu have been together with the theme of passing money, stone, or goodness because they can not pee. Celebrities who have authorized dairy products have also been ridiculed with photoshopped pictures.
Before the government started offering free medical care, some parents reportedly spent little money on medical care for their sick children. Children who fell ill before the scandal broke out on September 12 are not entitled to free medical care offered by the State. The parents of the two victims, one from Henan and one from Guangdong, filed a lawsuit against Sanlu despite pressure from the government. The parents of Henan's son have claimed Ã, Â ¥ 150,000 for medical expenses, travel, and other expenses incurred after their child develops kidney stones. On October 20th, parents of a baby who died from contaminated milk drew to New Zealand for justice on TV ONE. They were quoted as saying the perpetrators of the milk scandal responsible for the death of their child deserve to "die a thousand deaths". A total of nine cases were filed against Sanlu in Shijiazhuang. After weeks of discussion, and in the absence of a compensation plan, a group of 15 lawyers filed a collective suit on behalf of 100 families against Sanlu, seeking medical and other fees as well as compensation for trauma and hereditary deaths.
Anger at political leader
There is a growing hatred towards the leaders of the country because of the perception that they are not disturbed by the food security flaws faced by ordinary citizens: in a speech delivered by Zhu Yonglan (???), Director of the Council of State Office of the Central Government Special Food Supply Center (CGOSFSC) in August 2008, Zhu revealed that his company had been established in 2004 to source high quality organic food from agriculture working under strict guidelines, to supply to political leaders, families and retired cadres.
Prime Minister Wen Jiabao apologized to the country, saying he felt "very guilty" about poisonous dairy products, in the same way as he had previously called on the people's forgiveness for the death of coal miners, contaminated drinking water, and train passengers stranded by the authorities. 'Inadequate response to severe snow storms during the New Year.
Author Qin Geng (??) said: "The big picture in this case is the importance of one party rule above all, not that they will put the people's safety first". Qin concludes what the Chinese public has said by state-controlled media that dairy contamination is a well-regulated process, and they are "very sad, very frightened and deeply concerned".
Quest for milk substitutes
Poor consumers rely on local baby formula, which is roughly half the price of imported brands, have been left with no alternative to feed their children. Many are now losing confidence in local brands, and others are not sure which brands are safe. The supermarket shelves have been cleared of product recalls. Shops in Hong Kong have reported a rush to import formula from cross border buyers, and some retailers reportedly donate their stock. Mainland people have also been rushing to import baby formula from Kinmen. The wet nurse enjoys a resurgence of popularity in the big cities. New Zealand media reported that Chinese sailors and expatriates have bought local dairy products to be sent back to relatives in China. It is estimated that up to 80% to 90% of infant formulas purchased in Australia are destined for China.
Taiwan
The fear of melamine food became a focal point on the warming relationship between the Taiwan government and the Chinese government, and a big demonstration was held by the opposition Democratic Progressive Party on October 25, 2008 to voice dissatisfaction with Taiwan's closer relationship with Beijing, particularly related to accidents. Protesters fearful of reunification blame the Kuomintang for fear of melamine, and criticize it for failing to defend China for its contamination. One citizen voiced concern that President Ma Ying-jeou's pledge for a closer relationship with China will bring more polluted products to Taiwan. Minister of Health Department, Lin Fang-you, is strongly criticized for raising the legally acceptable extent of melamine in food products from zero to 2.5 ppm. Public condemnation after the move forced Lin to resign. His successor, Yeh Ching-chuan, announced a return to the original zero-tolerance policy for melamine.
The PRC government
Top leader comments
AQSIQ announced the lifting of all exceptions from inspections previously given to milk producers, who are required to stop citing privileges in their ads. The State Council ordered the overhaul of the dairy industry, and promised to provide free medical care to those affected. Officially, the State Council released its initial findings, and the top-level official apology of the incident took place on 21 September. Wen Jiabao apologizes while visiting the victim at the hospital.
CPC Secretary General Hu Jintao said on October 1, 2008: "Food safety is directly related to the widespread mass prosperity and corporate competence... Chinese companies must learn from the lessons of Sanlu powdered milk powder."
On October 6, 2008, blaming "illegal production and greed", "milk production and chaotic order distribution" of the country, and "non-existent oversight" for the crisis, the State Council announced the regulation of the new dairy industry.
On October 9, 2008, in an effort to control damage to China's dairy products exports, officials at a World Trade Organization meeting insisted that contamination had been "unintentional", directly contrary to WHO's observations. Chinese trade representatives have criticized countries that have banned blankets on Chinese food products. They urge member states to base import restrictions on scientific risk assessment, and use the WTO's official notice mechanism. On Oct. 11, Deputy Health Minister Liu Qian stated that all foreign company applications for dairy compensation will be dealt commercially, although the government may use diplomatic channels if necessary, if problems are encountered.
Gradual inspection program
According to senior quality inspectorate officials, the government aims to establish nearly 400 product testing centers in the next two years, and 80 of these will be food testing centers. Working groups were established in almost every province to set up new food testing centers and replace outdated equipment.
On Sept. 24, 2008, the newly appointed AQSIQ chairman in China Wang Yong said that the government would "take strong action" to deal with chemical contamination "; the inspector has removed 7,000 tons of melamine-tainted dairy products from stores across China.
On October 4, the Ministry of Agriculture announced it had drafted an emergency rescue plan with the Ministry of Finance to provide special subsidies to dairy farmers, which was heavily influenced by lack of demand following a contamination scandal; local governments have developed policies to stabilize the dairy industry; 150,000 officials have been sent to remodel the entire supply chain from fodder to milk collection; 18,803 dairy stations have been registered and reviewed by these officials. The ministry is reported to have investigated 98 producers and dairy farms, banning 151 illegal companies and indicting three food manufacturers containing melamine. During a melamine pollution investigation in Yili and Mengniu in Hohhot, police arrested six more people for allegedly selling and mixing melamine into raw milk. AQSIQ announced on 5 October that all tests showed all milk produced after September 14th free from contamination. The General Administration of Quality Supervision, Inspection and Quarantine states all dairy products made before September 14 will be tested for melamine. They gave notice to all supermarkets, shops, and all city, city and village vendors to immediately move and seal all milk powder and liquid milk made before September 14, pending further testing.
Ministry of Health and five other government agencies issued a joint statement on Oct. 9, establishing a legally acceptable level of melamine content in infant formula at 1 ppm (1 mg/kg), and at 2.5ppm in other dairy products (including milk). China's Centers for Disease Control and Prevention said that any amount exceeding 1 ppm would give a reason to suspect its presence was intentional. "
Public relations
On Sept. 26, 2008, to quell anxiety over speech by Zhu Yonglan of CGOSFSC on the leader's isolation of food safety issues facing the general public, Xinhua issued a brief statement, in Chinese, denying the existence of the Center, the award, or anyone named Zhu Yonglan, says this is "pure rumor".
On September 16, AQSIQ tests on baby powder milk produced by 109 companies showed 69 batches of 22 companies contaminated with melamine; The State Council seeks to ensure that the formula produced by most companies in China is safe. It said: "the number of companies with melamine-laminated milk accounted for 20.18% of China's total milk powder companies; the number of contaminated batches accounted for 14.05% of the total batches tested." On Sept. 30, AQSIQ said its test on 265 batches from 154 companies showed that "only 18%" had tested positive for melamine: "of 290 national dairies in 154 companies, representing 87% market share, 134 of these dairies have been tested negative to melamine. "
On September 16, AQSIQ published test results on 408 liquid milk producers, and found "most dairy products safe to drink", although the results showed nearly 10 percent of batches from Mengniu, Yili and Bright were contaminated.
The government stressed that no new cases of melamine-related disease have been detected since September 20, and test results on samples from 31 brands of infant formula, 84 brand powder for adult consumption, and 75 domestic brands of liquid milk produced after September 14 contain no melamine, said AQSIQ. To demonstrate that its emergency measures have been effective, the Department of Agriculture said the rate of dumping of raw milk due to a contamination scandal has dropped from 23.6% on September 22 to 4.6% on October 1.
Sensor
Behind the scenes, Chinese media were ordered to muffle coverage of a scandal in order to prevent unrest. News editors are instructed to comply with official copies of Xinhua . Traditionally, the media knew to avoid negative news coverage, and CCTV shifted the reporting emphasis on the upcoming launch of Shenzhou VII. Announcement of AQSIQ test results is downgraded to the last item on CCTV night news.
The Wall Street Journal reported that the suppression of bad news has not improved since the scandal was revealed: the media stiffly follows the official line, as instructed; Chinese consumers are uninformed about the global withdrawal rate. It reports local reporters saying that discussions about the causes of the crisis, government responsibilities, questions about government involvement with dairies, are strictly forbidden.
On January 2, websites created by individuals protesting against Sanlu were also blocked by authorities. A group of parents whose children were sickened by melamine-tainted milk held a press conference to draw attention to the suffering of their sick children; five people allegedly detained by police and taken to forced labor camps outside Beijing. They were released a day later.
Pressure on the legal profession
A group of 90 lawyers from Hebei, Henan and Shandong - the three worst-hit provinces - have made bono bids to help victims, and their list of names is published. Organizers of the group stated that they were under pressure from officials not to get involved in the matter. The Beijing Bar Association, part of the Communist Party apparatus, called on its members "to put confidence in the party and government". Other members of the group reported receiving less subtle requests. Authorities are said to be afraid of social unrest if lawsuits are released. The Hong Kong Pro-Beijing Journal Ta Kung Pao reported that the central authorities, fearing the effects of lawsuits, met with lawyers' groups on September 14, asking them to "act together, and help maintain stability".
Chang Boyang, one of the volunteer group of lawyers, said he had filed a lawsuit in Guangdong against Sanlu on behalf of the parents of one victim. One has already been filed in Henan. Chang said that Henan's judiciary department had ordered 14 Henan lawyers to stop helping kidney stone victims, saying it had become a political issue. He claimed he was told by officials to "follow the arrangements set by the government", and was subsequently threatened: "If these suggestions are disobedient, lawyers and companies will be dealt with." Zhang Yuanxin, lawyer and officer at the Xinjiang Lawyers Association said that the actions of certain departments in government have "rearranged the development of the legal profession". He said that "can not be tolerated" for the government to intervene in judicial affairs, denying ordinary citizens the right to prosecute.
An official said that the central government has issued instructions that place cases on hold, pending decisions on how to handle cases in an integrated manner. Furthermore, the court was ordered not to provide written reprisals or to accept cases relating to Sanlu for the time being.
Criminal prosecution
Other third parties
At the root of economic problems
Stratfor believes that the act of faking milk and baby food with full knowledge of severe sanctions, including execution, looks like "desperation". It was noted that in 2008, dairy farmers were stimulated by the rising cost of livestock, feed, facilities, and government prices. Mengniu's share price has fallen 12 percent since October 2007 due to higher costs of raw milk (partly due to rising animal feed costs) and price control - anti-inflation measures targeted at the dairy sector were announced on January 16. Dairy suppliers are in accordance with finer cost-cutting methods to sustain reduced profits.
On the damage caused
Joseph Sternberg of the Wall Street Journal said that the failure of Beijing's food security measures "is far more destructive, and embarrassing, than it initially seems... [not only has this] milk poisoned thousands of babies with melamine, that too poison the public with fear ". Lawyer Bill Marler, speaking at a food safety conference in Beijing, said that the fear of this food has damaged the "made in China" brand overseas. He commented: "If this product goes to the United States, it will be a 'game over' for many products in China."
An op-ed in the New York Times compared this to the "big milk scandal" in New York in the 1850s where 8,000 children were reported to have died of milk from fed cows that were then bleached with plaster from Paris, thick with starch, eggs and color with molasses ".
An article published in the San Francisco Chronicle describes the failure of regulation of milk scandal against troubled assets in the subprime mortgage crisis, and questioned whether regulators in both cases ever understood or actually monitored the extent of the danger.
Louis Klarevas, a professor at New York University's Center for Global Affairs, said that products in the list of potentially harmful products that reached the US in recent years are exclusive to China: "But because the large-scale labor market is competing for their share of international trade, incentives to cut corners will increase and the temptation to ignore dangerous goods may be a more general occurrence. "
On a more positive note, Bill Durodià © Å ©, then a senior fellow at S. Rajaratnam International Studies School in Singapore noted in the November 10, 2008 edition of Today newspaper there, in response to a question that suggested there may be more such incidents in the future because of the more liberal trade ties with China, that: "exposing China to the world market is probably the fastest way to solve this problem."
Ron Unz compared the Chinese government and the positive media reaction to the coverage of the Vioxx scandal in the US, saying that "American journalists seem to focus more on half a dozen people in China than they did on the 500,000 deaths of their fellow Americans."
In the power structure
Hu Xingdou (???), a professor at the Beijing Institute of Technology, said: "There has been no attempt to build a moral foundation for the market economy, and this incident is an inevitable outcome." Hu urges leaders to change ways of thinking, improve the system, rather than tackle emerging problems.
The milk scandal raises the core question of whether the ruling Communist Party is able to create a transparent and accountable regulatory structure in a one-party system. Time magazine quotes many analysts as saying that the party's need to maintain economic and information control undermines the independence of any regulatory system. An analyst, Willy Lam, a Senior Member at The Jamestown Foundation, indicates that the widespread CCP control over political and economic resources has resulted in no significant systematic checks and balances. "Institutions that can provide some oversight of government parties and authorities - for example, legislatures, courts or media - are tightly controlled by the CCP apparatchiks." A Beijing-based consultant, Dragonomics, agrees that "the issue is rooted in the Communist Party's ongoing involvement in price control, enterprise management and information flow". Independent regulations are less or ineffective because the local industry 'is so related to local officials.
The Times notes that while a 20-year-old kid in Shanghai may have kidney damage from drinking contaminated formula, on the other hand, "like the ancient emperor, the new communist elite enjoys the best, generating from all over China , sourced from the high security department. "
Access Asia, a Shanghai-based consumer consultancy, said that Fonterra is a classic example of western executives in China, "trusted advice in business books that they should avoid making their local partners lose face" by all means. "It shows that Fonterra is paying a fortune in the abolition, a business ruined and a public condemnation.
Caijing said the crisis revealed that there had been "heavy duty negligence" at AQSIQ, and that the government had failed as a "night watchman". Citing public consensus that the government should restrict itself to the role of oversight, it urges the development of a regulatory system aimed at the role of the regulator overseeing the production process, avoiding over-regulation, 'regulatory mastery' and the abuse of power by regulators. "Keeping the market in order and ensuring independent law enforcement must be part of the mandate."
In the secrecy culture
David Bandurski, a journalist and researcher at the China Media Project, criticized the state's crippling state control combined with "escaping commercial greed," and said that censorship "suppresses information critical to the welfare of ordinary Chinese." He asserted that increased freedom of the press needs to be a component of any strategy to tackle this problem and future food safety lapses in China. Free media in China can compensate for the underdeveloped rule of law, and it is important to keep companies and regulators honest. Bandurski cites an alert in the October 9, 2008 edition of Nanfang Daily and Times Information for consumers to realize that the troubled milk stock (produced before September 14) has reappeared in some stores in under the cover of aggressive promotions.
Former senior party official Bao Tong said "the more dark secrets are revealed, the better, you can not cure the disease, or save the Chinese, until you get to the root of the problem." "If the Chinese government tries to downplay this incident, there will be no social stability in China, let alone harmony... This will mean that this government has lost the most basic level of trust."
As a reaction and commentary on the scandal, Chinese artist and animated video producer Pi San created "Little Rabbit, Be Good" as part of the popular Kuang Kuang video series. Although officially prohibited or banned by the Chinese government, the use of astute Chinese web services such as Baidu allows Chinese citizens to access this and many other forbidden materials.
Contamination widens
The search widened when some producers tested positive despite reportedly not using Chinese milk. Sri Lankan manufacturer of Munchee Lemon Puff biscuits, having tested positive in Switzerland, expressly states that powdered or dairy products only come from Australia, the Netherlands and Canada; similarly, Pokka products without milk or derivatives from China were found by Vietnamese authorities to be contaminated.
Chicken and egg
Japanese and South Korean government tests on imported Chinese powdered eggs found melamine contamination. Japan finds melamine in frozen fried chicken imported from China. South Korean supplies are tracked to two companies in Dalian. On October 26, the Hong Kong government found 4.7ppm of melamine in eggs from Dalian. Hong Kong Food and Health Secretary York Chow suspects that melamine comes from the feed given to chickens laying eggs. On October 29, the Hong Kong authorities found a third collection of eggs containing excessive melamine. The Taiwan Ministry of Health said that six powdered protein compounds from Jilin and Dalian were found to contain 1.90 to 5.03 ppm melamine.
Agricultural officials speculated that the feed given to the hen could explain melamine in eggs. The website Xinhua and Harian Rakyat both contain stories from Nanfang Daily that melamine mixing into livestock feed is the "open secret" in the industry: melamine scrap mixed into cheap "protein powders" that are resold to feed suppliers. People in the trade interviewed by BusinessWeek also affirm it is a common practice, and has been going on for "years", with most believing it is non-toxic to animals. Melamine traders said after Sanlu, the government began pressuring melamine sales to food processing companies or to feed producers.
Powdered powder
Malaysian authorities have determined that ammonium bicarbonate, not milk, imported from China, is a source of contamination at the Khong Guan and Khian Guan biscuit plants. Malaysian authorities say it may be cross-batch contamination from China's Broadtech Chemical Int. Co. Ltd., Dalian Chemical Industries and Tianjin Red Triangle International Trading Co., and do not suspect counterfeiting. On October 19, the Taiwanese authorities detected melamine in 469 tons of baking ammonia imported from China. The tested sample showed up to 2,470ppm melamine.
Impact and response
International agencies
Jorgen Schlundt, food safety chief at the WHO, criticized China's food safety system for "halting", saying that "poor communication between ministries and agencies may have extended the spread of melamine intoxication."
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