16 September 2008

This is why we have the FDA

Bloomberg has the story, by Helen Yuan, about the problems with food production in China:
Inner Mongolia Yili Industrial Group, China's largest maker of dairy products, fell to its lowest stock price in more than two years in Shanghai trading, after rival Sanlu Group Co.'s products were tainted by a chemical.
Yili fell 6 percent to close at 13.43 yuan, the lowest since March 2006. An ice cream product made by Yili may be tainted by the same chemical, Hong Kong said today after the market closed.
Contaminated milk powder made by Sanlu is linked to 1,253 cases of infant kidney stones, killing two, the official Xinhua News Agency said today. Wellcome, a Hong Kong supermarket chain, said today it will stop selling Yili ice cream products after a regulator said it found the same chemical in a sample.
Sanlu Group, 43 percent owned by New Zealand's Fonterra Cooperative Group Ltd., apologized to consumers and promised to recall all milk powder produced before 6 August, Xinhua News reported late yesterday. The milk powder was tainted with melamine, a white crystalline compound used to make plastics and tanning leather, the Chinese government said.
Milk sellers diluted milk with water to increase inventory, and then use melamine, which mimics protein, to boost the apparent protein content, the Chinese government said. The milk is then processed into milk powder.
The incidents underscore the battle China faces in scrutinizing product quality and ensuring food safety. Thirteen babies died of malnutrition in 2004 and almost two hundred were admitted to hospital in eastern China's Anhui province that year after being fed substandard milk.
Sophie Chen, 32, the mother of a 1-year-old boy living in Shanghai, said the Sanlu scandal led her to decide to buy only imported infant milk powder. "I don't dare buy domestic brands, and I called my relatives to ask them not to choose domestic brands as well", she said. "Most families in China have only one child. We want to give them the best."
Rico says no one loves the FDA, until something like this happens...

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