More contaminated milk in China

Wednesday, June 1, 2011

Nearly half of the dairies in China were shut down in early April, according to Associated Press reports, as the government tried to clean up contaminated milk supplies. The fight to clean up milk processing goes back to 2008 when children became sick and even died from drinking milk contaminated with melamine, an ingredient in plastic making. The contaminant du jour is hydrolyzed leather protein. Like melamine, the leather product makes watered-down milk appear to have normal levels of protein.

The story notes that small companies are most likely to be closed because they can't afford the expensive testing equipment that the government now mandates. The winners are a couple of dominant players that will be able to strengthen their positions in the Chinese market place. BF