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2008 Chinese milk scandal

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The 2008 baby milk scandal is a food safety incident in China where milk and infant formula had been adulterated with melamine in order to fraudulently boost the apparent protein level of milk. Melamine is a non-alimentary industrial chemical which causes kidney stones and other renal damage.

On 22 September, 2008, the Associated Press reported that adulterated milk products have caused nearly 53,000 illnesses, over 12,800 hospitalisations,[1] and at least four infant deaths.[2] 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.[3]

Discovery at Sanlu

In September 2008 Sanlu came to international attention due to product concerns regarding its infant milk formula, which was discovered to have been contaminated with melamine, a non-alimentary chemical which causes bladder or kidney stones. At least three or four infants have so far died and 53,000 babies have been made ill, with over 12,000 hospitalised and a number of survivors diagnosed with acute renal failure.[1][2] New Zealand-based dairy cooperative Fonterra, which owns a 43% stake in Sanlu, was alerted to the contamination on 2 August, and claims 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.[4]

The addition of melamine boosts the apparent protein content due to the molecule's richness in nitrogen. The Kjeldahl protein test, which was invented in the late 1800s and is still used in China, relies on the detection of nitrogen. Melamine thus allows for the fraudulent dilution of milk. Its use in food production is banned in China because it is known to cause renal and urinary problems in humans and other animals.[5] Use of the chemical also caused the pet food recalls in Europe and the U.S. in March 2007.

Arrests

On 17 September 2008, Health Minister Chen Zhu stated that 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";[6] 19 people were detained by the Chinese authorities – all third parties, according to Fonterra's Chief Executive – [7] and more than 80 summoned for questioning.[8] 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.[9] Two brothers named Geng who ran a milk collection center in Hebei had already been arrested for allegedly supplying three tonnes of adulterated milk daily to the dairy. Batch-rejection due to quality checks and rising cost of cattle feed were cited as possible motives for the deception.[4]

Cover-up allegations

Sanlu management is said to have been aware of the problem since June 2008, according to company sales representatives.[10] However, minister of Health officials said that Sanlu had begun to receive customer complaints as early as March 2008.[11]

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[citation needed] 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.[12]

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 budget to screen all negative news.[13] 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.[13]

Fonterra notified the New Zealand government on 5 September. Three days later, Prime Minister Helen Clark had Beijing officials alerted directly.[4][14] Clark said: "I think the first inclination was to try and put a towel over it and deal with it without an official recall."[15]

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"[15][16][17] although the Central government denied this.[4] Hebei provincial vice-governor said his administration was only notified by Shijiazhuang on 8 September.[11] The World Health Organisation, which was only notified on 11 September,[18] 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.[19]

Sanctions

On 15 September, the company issued a public apology for the contaminated milk powder;[10] 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.[20]

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.[21][22] Shijiazhuang Mayor Ji Chuntang resigned on 17 September.[23] Li Changjiang, minister of the AQSIQ, resigned on September 22.[24] Shijiazhuang Party Secretary Wu Xianguo was fired on the same day. [25]

The Chinese industry under the spotlight

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. 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.[3][22] Sanlu, whose products sell at half the price of equivalents on the market,[26] recorded the highest levels of contamination among all the samples tested, at 2.56 grams per kg. Tainted samples were found among other suppliers, including its two biggest dairies, Mengniu and Yili Industrial Group; concentrations ranged from 0.09 - 619 mg/kg.[3] Officials estimate that about 20 percent of the dairy companies tested in China sell products tainted with melamine.[27][28]

The domestic Chinese market was valued at some ¥122 billion (US$18 billion) in 2007, and consumers have severely lost confidence in the industry.[29] 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.[30] Yili, Mengniu and Bright Dairy & Food Co. recalled tainted milk powders and apologised in separate statements.[26] Mengniu recalled all its baby formula, and trading in its shares on the Hong Kong Stock Exchange was suspended on 17 September.[31] Shares in other dairy companies fell strongly the next day.[32] 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 nearly 10 percent of the samples from Mengniu and Yili contained it in concentrations of 0.8 - 7 and 0.7 - 8.4 mg/kg respectively, while 6 batches out of 93 from Bright Dairy contained 0.6 to 8.6 mg/kg.[33] On discovery that liquid milk was also contaminated, the three were all stripped of their status as 'Chinese national brands'[34]

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,[35] 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.[36] Both companies were said by farmers and agents to have purchased milk which failed quality tests, for only two-thirds the normal price. A new policy was put in place on 17 September stopped that practice.[35]

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."[37]

Impact of adulterated milk outside mainland China

Expressing concern 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 issued an advisory on 12 September 2008, while assuring consumers that no formula approved for sale in the U.S. was made in China.[38] The FDA said that all manufacturers and marketers of baby formula in the U.S. had been contacted and had assured the FDA that they receive no ingredients from China.[39]

Although products exported were said not to have been affected by contamination, 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;[40] White Rabbit Creamy Candy was similarly found to have been contaminated.[41] Taiwan ordered King Car Food, which used milk powder imported from mainland China, to recall eight of its products, including soups and some varieties of Mr. Brown instant coffee.[29][42]

Hong Kong and Macau

Friesland Foods recalled all of its plastic-bottled milk in Hong Kong and Macau;[43] Hong Kong authorities ordered a recall of Yili products after 8 out of 30 tested positive for melamine.[44] 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.[45] 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.[46] "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.[41]

On the day when a Hong Kong girl was diagnosed as the territory's first victim, anxious parents were frustrated to discover that doctors at the special unit set up at the Princess Margaret Hospital were taking the day off. Deputy Director of Health Gloria Tam said that it was "not something so urgent that it needs to be dealt with in 24 hours... They can go during office hours tomorrow". Medical sector legislator Leung Ka-lau said the lack of daily cover during the crisis was "insensitive". [45]

Public sentiment and reporting censorship

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,[47] and its name as displayed in the header bar changed to "The Melamine Group", in a play of words on the character "三" (number 3) common to both Chinese names (Sanlu: 三鹿集团 "sān lù jí tuán", Three Deer Group; melamine: 三聚氰胺 "sān jù qīng àn three poly cyanogen amine);[48][49] "Melamine" was also added as a product name by a hacker.[50]

Many people have reportedly spent small fortunes on medical care for their sick children.[32] 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,[32] and shops in Hong Kong have reported a rush for imported formula from cross-border shoppers. Hong Kong retailers are reportedly rationing their milk-powder.[51] Mainlanders have also been rushing to import milk powder from Kinmen. [52]

As has been increasingly common practice, citizens have vented their anger on Internet bulletin boards. Consequently, mainland media has been 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[10]. The announcement of the AQSIQ test results was relegated to the final item on the CCTV evening news.[22]

Top-level response

A top-level official apology of the incident was offered by Wen Jiabao on 21 September 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)[53]

See also

References

  1. ^ a b Scott McDonald (2008-09-22). "Nearly 53,000 Chinese children sick from milk". Associated Press.
  2. ^ a b Jane Macartney (2008-09-22). "China baby milk scandal spreads as sick toll rises to 13,000". Times Online.
  3. ^ a b c "China seizes 22 companies with contaminated baby milk powder". Xinhua. 2008-09-16.
  4. ^ a b c d Klaudia Lee (2008-09-16). "NZ alerted China to tainted milk, PM says". South China Morning Post, p. A1. Cite error: The named reference "alerted" was defined multiple times with different content (see the help page).
  5. ^ Stephen Chen (2008-09-18). "Melamine - an industry staple". South China Morning Post, p. A2.
  6. ^ Anita Chang (2008-09-18). "12 more arrested in China's tainted milk scandal". Associated Press.
  7. ^ "Fonterra says somebody sabotaged milk". New Zealand Herald: New Zealand National News. 2008-09-15.
  8. ^ Tania Branigan, James Orr and agencies (2008-09-18). "Police make more arrests in baby milk scandal in China". The Guardian.
  9. ^ "More arrests in China milk scandal". The National Newspaper. 2008-09-18.
  10. ^ a b c Raymond Li (2008-09-16). "Censorship hammer comes down over scandal". South China Morning Post, p. A5.
  11. ^ a b Kristine Kwok (2008-09-17). "Officials knew of tainted milk for a month". South China Morning Post, p. A4.
  12. ^ "Food production supervision dept reply to query no.20080724-6021-28494". AQSIA (in Simplified Chinese). Google cache. 2008-07-31. Retrieved 2008-09-22. {{cite web}}: |archive-url= requires |archive-date= (help)
  13. ^ a b "百度声明：从未答应屏蔽三鹿负面 (Baidu declares: We never agreed to bury Sanlu negative news)" (in Simplified Chinese). Sina.com. 2008-09-13.
  14. ^ "Toxic milk toll rockets in China". BBC News. 2008-09-15.
  15. ^ a b Jane Macartney & Sophie Yu (2008-09-15). "Chinese milk powder contaminated with melamine sickens 1,253 babies". The Times. Retrieved 2008-09-15. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  16. ^ Stephen Hutcheon (2008-09-15). "Was China's milk scandal hushed up?". New Zealand Herald.
  17. ^ Richard Spencer (2008-09-15). "China accused over contaminated baby milk". The Daily Telegraph.
  18. ^ Margaret Harris (2008-09-22). "WHO not notified until September 11". South China Morning Post, p. A4.
  19. ^ "AFP, Has there been a cover-up, WHO asks". South China Morning Post, p. A3. 2008-09-19.
  20. ^ "China to destroy 10,000 tons of tainted baby formula". Xinhua. 2008-09-15.
  21. ^ "Officials, company manager sacked following baby milk powder scandal". Xinhua. 2008-09-16.
  22. ^ a b c Klaudia Lee (2008-09-17). "Tests find tainted baby milk at 21 more firms". South China Morning Post, p. A1.
  23. ^ "Death toll rises to four in tainted baby formula scandal in China". Xinhua. 2008-09-18.
  24. ^ "国务院任命王勇任质检总局局长 同意李长江辞职". Chinese Central Government's Official Web Portal. 2008-09-22.
  25. ^ "石家莊書記吳顯國被免職" (in Traditional Chinese). Ming Pao. 2008-09-22.
  26. ^ a b Lee Spears (2008-09-18). "China Revokes `Inspection-Free' Right as Milk Scandal Spreads". Bloomberg.
  27. ^ Tini Tran (2008-09-17). "6,200 Chinese babies ill, 3 die from tainted milk". Yahoo!.
  28. ^ "Milk Powder Products From 22 Chinese Companies Contain Melamine". China Retail News. 2008-09-18.
  29. ^ a b Lee Spears & Wendy Leung (2008-09-21). "China Milk Scandal Spreads; Hong Kong Girl Sickened". Bloomberg.
  30. ^ "China's cabinet orders inspections, reform of dairy industry". Xinhua. 2008-09-17.
  31. ^ "China Mengniu Dairy shares suspended -HKex". Reuters. 2008-09-17.
  32. ^ a b c "Investors dump financials and dairy producers". South China Morning Post. 2008-09-18. Cite error: The named reference "what" was defined multiple times with different content (see the help page).
  33. ^ "Most liquid milk in China does not contain melamine". Xinhua. 2008-09-18.
  34. ^ "Yili, Mengniu, Bright Dairy lose their status as 'national brands'". China Central Television. 2008-09-22.
  35. ^ a b Al Guo (2008-09-22). "Dirty secrets of milk-faking capital". South China Morning Post, p. A5.
  36. ^ Al Guo (2008-09-22). "Dairy giants involved in scandal have spent millions on factories in Inner Mongolia". South China Morning Post, p. A5.
  37. ^ Josephine Ma (2008-09-19). "Adding chemicals to milk common: insiders, Page A3". South China Morning Post.
  38. ^ "FDA Issues Health Information Advisory on Infant Formula". U.S. Food and Drug Administration. 2008-09-12.
  39. ^ "FDA: Melamine found in baby formula made in China". USA Today. 2008-09-11.
  40. ^ "Suspension of all milk and milk products from China" (PDF). Agri-Food and Veterinary Authority of Singapore. 2008-09-19.
  41. ^ a b Ng Kang-chung (2008-09-22). "Milk contamination spreads to candy, coffee". South China Morning Post, p. A1.
  42. ^ "港3岁半女童饮毒奶肾结石" (in Simplified Chinese). Wen Wei Po. 2008-09-21. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help); Unknown parameter |Author= ignored (|author= suggested) (help)
  43. ^ Charles Hutzler (2008-09-21). "China seeks public trust after milk scandal". Associated Press, Google.com.
  44. ^ "Hong Kong recalls dairy products". BBC News. 2008-09-18.
  45. ^ a b Paggie Leung & Mary Ann Benitez (2008-09-20). "HK store chains strip shelves of Mengniu goods". South China Morning Post, p. A2. Cite error: The named reference "frustrated" was defined multiple times with different content (see the help page).
  46. ^ Jasmine Wang (2008-09-20). "Export milk less likely to be tainted, says mainland firm". {{cite news}}: Unknown parameter |publsiher= ignored (|publisher= suggested) (help)
  47. ^ "Sanlu's website hacked again". Googler at Artarmon. 2008-09-19.
  48. ^ "Sanlu Group website hacked, Header bar changed to "Melamine"". cnbeta.com. 2008-09-12.
  49. ^ Annotated links and character meanings are based on Wiktionary, except "集团" definition (group, bloc) from CJEDictionary
  50. ^ "'Melamine' added as a product name, Sanlu Group - Products Show". 2008-09-19.
  51. ^ Peter So (2008-09-18). "Mainlanders strain powder supply in Hong Kong". South China Morning Post, p. A2.
  52. ^ "大陸遊客金門搶購奶粉" (in Traditional Chinese). Ming Pao, Sina.com. 2008-09-21.
  53. ^ "China Focus: Chinese premier calls on sick infants". Xinhua. 2008-09-21.
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