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Dairy firms may close for missing licence deadline
By Zhang Xuanchen |
February 24, 2011, Thursday
|
Online Edition
Online Edition
SEVERAL small and medium-sized dairy firms in Qingdao in the eastern Shandong Province are facing possible closedown as they may fail to renew their business license before the March 1 deadline set by the government to straighten a scandal-ridden market.
So far, only one of the 13 dairy producers in the port city had its licence renewed; the rest are waiting for approval by the industry watchdog. At least three small companies have halted production as they couldn't afford the high-priced manufacturing and lab equipment in time, a local newspaper, City Sun, reported today.
Qingdao New Hope Qinpai Dairy Co said it paid 2 million yuan (US$304,164) for a new set of lab equipment last year. The company, owned by China's largest feed producer, New Hope Group, has followed the rules of the General Administration of Quality Supervision, Inspection and Quarantine by hiring educated employees and upgrading its facilities.
China's dairy industry suffered major setbacks in recent years after scandals of melamine-tainted milk powder and milk containing leather protein made the headlines in Chinese media, forcing consumers to buy imported products.
So far, only one of the 13 dairy producers in the port city had its licence renewed; the rest are waiting for approval by the industry watchdog. At least three small companies have halted production as they couldn't afford the high-priced manufacturing and lab equipment in time, a local newspaper, City Sun, reported today.
Qingdao New Hope Qinpai Dairy Co said it paid 2 million yuan (US$304,164) for a new set of lab equipment last year. The company, owned by China's largest feed producer, New Hope Group, has followed the rules of the General Administration of Quality Supervision, Inspection and Quarantine by hiring educated employees and upgrading its facilities.
China's dairy industry suffered major setbacks in recent years after scandals of melamine-tainted milk powder and milk containing leather protein made the headlines in Chinese media, forcing consumers to buy imported products.
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