VIBY J, Denmark─Arla Foods' Chinese, a partner of Mengniu Dairy, is among the dairies in China whose products have tested positive for melamine. These products have been recalled and production at Mengniu Arla's milk powder factory has been temporarily suspended.
Mengniu has begun an immediate investigation into the company's entire product range. The authorities' conclusions so far are that the chemical was added to the milk at the many milk collection depots, which are independent of the dairies.
The Chinese authorities have analyzed products from all players in the Chinese dairy industry following last week's announcement. One or more products from 22 companies - including Mengniu Dairy, Arla Foods' partner in the joint venture company, Mengniu Arla - have tested positive for melamine, a chemical that can cause kidney stones.
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.
Although melamine is banned in food production in China, it is thought that the chemical was deliberately added to the milk to boost its protein content.
To protect Chinese dairy farmers' livelihoods, Mengniu Dairy will continue to receive and pay for milk the company's suppliers deliver, unless the milk shows traces of melamine. Mengniu also guarantees that every consumer who becomes ill as a result of the company's products will receive compensation double the sum the authorities require.
The current food crisis in China only affects products produced in China. Arla Foods does not sell Chinese-produced products outside China.
