17 Sept – Arla Foods has been dragged into the worsening scandal over melamine contamination of baby milk in China after its joint venture partner Mengniu Dairy was named as one of the companies whose products have tested positive for the substance.
The Danish/Swedish company confirmed today production at the Mengniu Arla’s milk powder factory in Hohot, Inner Mongolia, had been halted and a product recall issued following the discovery. Mengniu said it had launched an investigation into the company’s entire product range and that production would not resume until the full extent of the problem was known.
Three out of 28 of Mengniu's samples have tested positive for melamine. All three products date from January 2008. Mengniu has not received any complaints from consumers who may have fallen ill as a result of the contaminated products, said an Arla statement issued today.
Arla said the Chinese authorities had so far concluded that the chemical was added to the milk at collection depots, which are independent of the dairies. So far, products from 22 companies in China have tested positive for melamine.
“The Chinese authorities are currently dealing with the situation, which has affected the whole of the dairy industry,” said the company.
“They believe that the milk was contaminated at the many independent milk collection depots where farmers take their cows to be milked. These depots resell the milk to the dairies.”
Arla Foods CEO Peder Tuborgh said: "The situation is extremely distressing for all the families who need milk of the highest quality to feed their children. It is extremely important that we get to the bottom of the problem so that consumers' safety can be guaranteed and confidence in the Chinese dairy industry maintained. Together with Mengniu and the authorities, we're doing everything we can to safeguard quality."
Mengniu Dairy said it will continue to receive and pay for the milk that the company's suppliers deliver, unless the milk shows traces of melamine. At the same time, Mengniu guaranteed that every consumer who became ill as a result of the company's products would receive double the amount of compensation prescribed by the authorities.