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October 13, 2012

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Tainted dairy company's factory license canceled

ONE of the factories of a dairy company in central China's Hunan Province mired in a toxic baby formula scandal in July was recently stripped of its license, the local quality watchdog said.

Five batches of the Nanshan brand milk powder produced by Ava Dairy Co Ltd were found to contain an excessive level of aflatoxin, a cancer-causing toxin, and the company had been ordered to recall its tainted products and suspend operation. Preliminary investigation showed it was mildewed cattle feed that caused the contamination.

Though the Hunan Quality and Technology Supervision Bureau said Ava Dairy had voluntarily requested to have its factory license revoked, claiming that the firm had decided to stop producing the baby formula products, insiders believe it was penalized by authorities, Guangzhou Daily reported yesterday.

Wang Dingmian, director of the Guangdong Provincial Dairy Association, said: "It is without doubt a punishment but the authorities expressed it in a mild way."

However, Ava Dairy still holds several other licenses to make milk and yogurt. Company officials could not be reached for comment, the paper said.

Aflatoxin comes from a fungus that grows in grains and finds its way into milk after cows are fed moldy grains. Excessive aflatoxin in cattle feed has led to high incidence of cancers in animal tests.

Some major domestic dairy companies, including China's biggest dairy firm, Mengniu, have been plagued by food safety scandals in recent years as domestic milk powder consumption has spiked greatly.


 

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