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Contaminated Milk Sours China's Dairy Business

Because melamine, a chemical additive used to make plastic, was discovered in the milk supply of China's third-largest dairy, more than 20 countries -- including France, India, and South Korea -- have already banned not just dairy products from China but also candies and cookies. Business Week provides a good overview of the crises, which has resulted in China's four largest dairy companies, accounting for nearly half the country's milk market, pulling their products off shelves.

USA Today carries an AP report that Kraft and Mars are investigating claims by Indonesia's Food and Drug Monitoring Agency that high traces of melamine were found in Oreo wafers, M&Ms and Snickers imported from China. The companies say they are adhering to a recall order, but stress the same products have been cleared of melamine in other Asian countries. They are looking into explanations, including the possibility that the goods could be counterfeit.

And an AP story in the Detroit Free-Press reports that British chocolate maker Cadbury says that tests have "cast doubt" on the safety of its Chinese-made products and ordered a recall of 11 chocolate products made at its factory in the Chinese capital Beijing, which are distributed in Taiwan, Hong Kong and Australia

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Read the whole story at Business Week, AP »

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