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Crisis in China's dairy industry also hits Arla
Arla Foods' Chinese joint venture partner, Mengniu Dairy, is among thedairies in China whose products have tested positive for melamine.These products have now been recalled and production at Mengniu Arla'smilk powder factory has been temporarily suspended. Mengniu has begunan immediate investigation into the company's entire product range,including Mengniu Arla's. The authorities' conclusions so far are thatthe **cal was added to the milk at the many milk collection depots,which are independent of the dairies.
The Chinese authorities have analysed products from all players in theChinese dairy industry following last week's announcement that melaminewas found in products from the Chinese dairy company, Sanlu. Oneor more products from 22 companies - including Mengniu Dairy, ArlaFoods' partner in the joint venture company, Mengniu Arla - have testedpositive for melamine, a **cal that can cause kidney stones.
The Chinese authorities are currently dealing with the situation, whichhas affected the whole of the dairy industry. They believe that themilk was contaminated at the many independent milk collection depotswhere farmers take their cows to be milked. These depots resell themilk to the dairies.
Three out of 28 of Mengniu's samples have tested positive for melamine.All three products date from January 2008. Mengniu has not received anycomplaints from consumers who may have fallen ill as a result of thecontaminated products.
Although Melamine is banned in food production in China, it is thoughtthat the **cal was deliberately added to the milk to boost its proteincontent.
Mengniu has recalled all three products from the market and, inconsultation with Arla Foods, suspended all produc-tion of milk powderat Mengniu Arla's factory in Hohot in Inner Mongolia until the companyhas conducted a full inves-tigation into the extent of the problem.
"The situation is extremely distressing for all the families who needmilk of the highest quality to feed their children. It is extremelyimportant that we get to the bottom of the problem so that consumers'safety can be guaranteed and con-fidence in the Chinese dairy industrymaintained," says CEO Peder Tuborgh, Arla Foods. "Together with Mengniuand the authorities, we're doing everything we can to safeguardquality."
To protect Chinese dairy farmers' livelihoods, Mengniu Dairy willcontinue to receive and pay for the milk that the company's suppliersdeliver, unless the milk shows traces of melamine. At the same time,Mengniu guarantees that every consumer who becomes ill as a result ofthe company's products will receive compensation double the sum theauthorities require.
The current food crisis in China onlyaffects products produced in China. Arla Foods does not sell Chineseproduced products outside China.
For further information, contact + 45 89 38 10 21.