CHINA: Mengniu embroiled in new tainted milk scandal

By Dean Best | 3 January 2012

Mengniu said mouldy cow fodder led milk to contain carcinogen

Mengniu said mouldy cow fodder led milk to contain carcinogen

Chinese dairy processor Mengniu Dairy has admitted producing milk containing excessive levels of a cancer-causing chemical.

Mengniu said last week (27 December) that a state inspection team had found a batch of its milk products were contaminated with flavacin M1, which can cause liver cancer.

The company said cows at its firm in Meishan in central China had produced raw milk containing the chemical. It blamed the contamination on "mouldy and deteriorated" fodder.

However, Mengniu said the affected products had not been released to market and insisted the items were immediately sealed and destroyed "without delay".

"At present, all products on shelf in the markets within and outside the People's Republic of China, including the Hong Kong market, have passed the relevant standards," Mengniu said on 27 December.

"From the lesson learnt from this incident, the group will reinforce its quality control procedures by closely monitoring products quality over each production process from raw milk collection to final products delivery to ensure product quality and food safety."

Nevertheless, the contamination is the latest food safety scandal to rock Mengniu and the wider Chinese dairy sector. In 2008, Mengniu was one of a number of Chinese dairy processors that had products tested positive for melamine, an industrial chemical.

Milk products contaminated with melamine was linked to the deaths of at least six infants and thousands of illnesses.

Shares in Mengniu slumped last week in the wake of the announcement and reports said the company's website was hacked.

Hackers changed the website address to "Hacked By:Drift" and posted a message that said: "Mengniu once made the Chinese people strong and proud, but now it’s doing harm to its own people", Bloomberg reported.

Expert analysis

China Mengniu Dairy Company Limited: Company Profile and SWOT Analysis

Synopsis ICD Research's "China Mengniu Dairy Company Limited: Company Profile and SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, financial ratios, SWOT analysis, key facts, information on products and services, details of locations and subsidiaries, plus information on key news events affecting the company. Summary This SWOT analysis and company profile is a crucial resource for industry executives and anyone looking to gain a better understanding of the company's business. ICD Research's "China Mengniu Dairy Company Limited: Company Profile and SWOT Analysis" report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. ICD Research strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report. Scope • Examines and identifies key information and issues about "China Mengniu Dairy Company Limited" for business intelligence requirements • Studies and presents the company's strengths, weaknesses, opportunities (growth potential) and threats (competition). Strategic and operational business information is objectively reported • Provides analysis on financial ratios of the company • The profile also contains information on business operations, company history, major products and services, prospects, key competitors, key employees, locations and subsidiaries Reasons To Buy • Quickly enhance your understanding of the company • Gain insight into the marketplace and a better understanding of internal and external factors which could impact the industry • Increase business/sales activities by understanding your competitors’ businesses better • Recognize potential partnerships and suppliers • Obtain yearly profitability figures Key Highlights China Mengniu Dairy Company Limited (China Mengniu) is engaged in

Sectors: Baby food, Dairy, Emerging markets, Food safety

Companies: Mengniu Dairy

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