Foreign firms gain from China milk powder scandal

by Dave Keating | September 19, 2008 at 12:17 am

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The Chinese baby milk scandal, coming on the heels of numerous other consumer safety problems coming from China, has further eroded confidence in Chinese goods. As a consequence, non-Chinese firms benefit. In this case, foreign powedered milk makers have received a boost from this scanbal.

Foreign milk powder makers in China are set to cement their dominant market position as a result of a widening scandal involving contaminated powder made by leading domestic dairy groups.

Four children have died from drinking milk powder laced with melamine, a toxic substance banned in food that can make protein levels appear higher than they are.

Nearly 10 percent of liquid milk batches sampled from Mengniu Dairy and Inner Mongolia Yili Industrial Group Co Ltd contained melamine, the General Administration of Quality Supervision, Inspection and Quarantine found.