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July 22, 2013

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Dairy firms face penalties in latest industry scandal

CHINA'S dairy watchdog said yesterday that any dairy producers found using milk powder to make so-called fresh milk would be severely punished after insiders said more than 60 percent of liquid milk sold in the country is made of milk powder with a variety of flavors and additives added.

Fresh milk should be made of raw milk, and milk powder is forbidden, the China Dairy Industry Association said.

Violators would face a fine and could have their license revoked, it said.

The China Business Journal reported yesterday that industry insiders said more than 60 percent of so-called fresh milk is just milk powder and water.

Milk powder from overseas is cheap and is favored by China's dairy producers to make fresh milk, said Wei Ronglu, executive deputy director of the Dairy Development Association of China's western regions.

Wei said milk powder imports soared from about 30,000 to 90,000 tons between 2005 and 2008 to more than 600,000 tons last year. Much of this milk powder was used to make liquid milk that was sold as fresh milk, Wei said.

Milk made from milk powder must be marked on the label, according to a circular issued by the State Council, Wei said.

Chinese authorities have stepped up efforts against malpractice in milk powder production and distribution following a number of dairy safety scandals.

In June, nine ministries and administrations issued a raft of regulations, the toughest measures so far to crack down on industry irregularities.




 

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