Melamine Tainted Milk Crisis Spirals in China

Chinese officials have confirmed three babies are dead and more than 6,000 sick after drinking the melamine contaminated milk. Of those, 158 are suffering from acute kidney failure.

17/09/08 Fonterra Cooperative Group, whose Chinese affiliate Sanlu Group Co. was found to have produced melamine-tainted milk, said local and regional officials in China took too long to issue a public warning. Chinese officials have confirmed three babies are dead and more than 6,000 sick after drinking the melamine contaminated milk. Of those, 158 are suffering from acute kidney failure.

Fonterra Chief Executive Officer Andrew Ferrier said in a statement that the San Lu Board, on which we have three directors, was first advised on August 2 that there was a problem with the contamination of infant formula. This was the first Fonterra knew of this issue. “At that point Fonterra pushed hard for San Lu to immediately conduct a recall of affected product,” he said.

“San Lu, in conjunction with the Chinese Government authorities, immediately implemented a trade recall of infant formula. San Lu, again working with the Chinese health authorities, then instituted a full public recall of all infant formula. Now the Chinese Government is recalling all San Lu products,” he added. New Zealand headquartered Fonterra owns 43 percent of Sanlu, one of China's biggest makers of infant formula.

Melamine, which is commonly used in the making plastics and fertilizers, has been added by Chinese businesses to artificially boost protein readings in animal feed and foods, even though it adds no nutritional value. Last year, pet foods containing melamine from China sickened and killed thousands of dogs and cats in the U.S. Although melamine itself isn't considered toxic, combined with other compounds it can cause kidney problems, with many infants who had consumed Sanlu formula developed kidney stones.

Meanwhile Fonterra China announced a voluntary recall of one batch of prenatal milk sold in China under the ANMUM Materna brand name. This particular batch had been manufactured and distributed under licence by San Lu using what we believe to be contaminated local raw milk. A company spokesman said this issue applies to the one batch of ANMUM Materna which was distributed in China (excluding Hong Kong, Macau and Taiwan). None of the batch in question was exported out of China.

All other ANMUM and ANLENE products in the market have been produced using only 100% fully imported milk from New Zealand and are free from any possibility of contamination with melamine from locally sourced milk, and adhere to the strictest New Zealand and international standards. Fonterra China said the stock was being recalled because consumer safety was the company’s utmost concern.