Tainted
milk products are nothing new to Chinese consumers. In 2008, six
infants died of severe kidney damage and an estimated 300,000 babies
suffered painful kidney stones after drinking tainted baby formula.
After testing, baby formula from several major Chinese dairy
companies, was found to contain melamine, an additive that falsely
boosts the protein levels in milk. Two Chinese companies, Mengniu and
Ava Dairy recalled baby formula produced by them in December 2011 and
July 2012, because it contained high amounts of aflatoxin, a
carcinogen produced by fungus in cows' feed. Also in June 2012,
another company, Yili Group, gave a recall for its main line of
infant milk powder because of unusually high levels of mercury found
in it.
As a
result of this, mothers in China, have developed an unprecedented
aversion to China made baby formula. Many young parents believe that
food products stamped as "Made in China" are unsafe for
children. Parents are fearful of the dangerous levels of hormones and
chemicals sometimes found in Chinese baby formula and are ready to go
to great lengths to secure foreign brands of baby formula. Chinese
visitors to countries like Hong Kong, Australia and Great Britain
started buying baby formula for their relatives and retailers in
these countries were forced to impose rationing on number of baby
formula tins, a person could buy.
One of
the biggest beneficiaries of this situation was a New Zealand dairy
products company called Fonterra. New Zealand's dairy exports are
considered as the gold standard as far as quality is concerned and
are particularly popular in Asia. New Zealand’s dairy exports are
worth more than NZ$12 billion ($9.7 billion) a year, according to
government data, with China its largest market accounting for almost
NZ$3.0 billion.
Fonterra
had almost a near-monopoly of this market accounting to 89 percent of
the country’s milk production, which stood at 15.4 billion liters
in 2011. It came as a bolt from the blue, when Chinese food
inspectors discovered in July 2013, that some latest batches of baby
formula supplied by Fonterra were contaminated with a toxic bacteria
called as Clostridium botulinum, which can cause botulism. The
symptoms of botulism include nausea, vomiting and diarrhoea, followed
by paralysis, and it can be fatal if not treated. On 31st
July 2013, China’s General Administration of Quality Supervision,
Inspection and Quarantine said it had ordered importers to withdraw
any contaminated products and called on quarantine officials to step
up inspections of dairy products imported from New Zealand. In an
editorial, Chinese state news agency Xinhua blamed lax regulations
in New Zealand for allowing the product to be exported.
The
troubles had then just began for Fonterra. Xinhua editorial also
pointed out that the problems with Fonterra were systemic, as
Fonterra also part owned a Chinese company, which in 2008, illegally
laced milk with the chemical melamine, resulting in six children
dying and 300,000 falling sick. The company took up fire fighting
measures immediately and revealed that three batches of whey
product, which is used to make infant formula and sports drinks, have
been found to contain the toxic bacteria. The statement was so
cleverly worded that it only highlighted the quality concerns and did
not say anything about the contamination of baby formula that could
cause botulism until near the end of the document.
However
the damage was done and after China, other countries also banned the
products. The botulism scare dented New Zealand’s “clean, green”
reputation, particularly in China, where Fonterra had a multi-billion
dollar dairy market and was considered as a premium product.
By
first week of August 2013, company said that they have recalled and
cleared the tainted baby formula tins from all stores in New Zealand
and are still trying to recall the stocks from other countries like
China and Saudi Arabia.
Even
before this fire was completely doused, another contamination scare
has hit Fonterra. On 19th
August 2013, it was found that a milk product called Lactoferrin
manufactured by a Fonterra group company, 'Westlake Milk,' had
excessive nitrate levels in the batches that were exported to China
again. The two batches of Lactoferrin totalling about 390kg were
exported despite showing nitrate levels of 610 and 2,198 parts per
million, which was well above the New Zealand standard of 150 parts
per million.
Company
spokesman says that the contamination was an isolated incident caused
when cleaning products were not properly flushed from a South Island
processing plant before a new run of product was sent through and
these batches of Lactoferrin did not pose a safety risk. The
Government of New Zealand says by the time the product had been
through the manufacturing process, nitrate levels would be so diluted
as to be harmless.
Whatever
may be the truth, the fact remains that the image of New Zealnd's
dairy industry, which has been a gold star for this nation, has been
severely mauled, and might take considerable time and effort to
retrieve it back. Meanwhile, no one can blame young Chinese parents
or in particular mothers, who have by now developed total aversion to
'made in China' baby formula, if they recall the famous phrase used by
Shakespeare in his drama Julius Ceaser, “ You too, Brutus?” to
address New Zealand, which was their trusted source of baby formula
so far and its famed dairy products company Fonterra.
21st
August 2013
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