More foods getting labeled as US or foreign-grown

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Posted on 30th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/29/2008 2:34 PM

By LAURAN NEERGAARD
AP Medical Writer

WASHINGTON (AP) _ No more wondering where your hamburger came from, or where your lettuce and tomatoes were grown: Starting this week, shoppers will see lots more foods labeled with the country of origin.

It’s a law years in the making but timely, as China’s milk scandal and the recent salmonella-tainted Mexican peppers prompt growing concern over the safety of imported foods.

Still, hold the import-bashing: Numerous outbreaks in recent years have come from U.S.-produced foods, like spinach grown in California.

Until now, shoppers have had little clue where many everyday foods — meats, fresh fruits and vegetables, certain nuts — originate. That’s what the so-called COOL law, for country-of-origin labeling, changes.

Those who want to buy local — or who prefer, say, Chilean grapes and New Zealand lamb — can more easily exercise their purchasing power. Those worried about lax safety regulations in certain countries can avoid those imports. And the next time tomatoes are suspected of food poisoning, consumers may be able to tell investigators they bought only ones grown in a certain region, speeding the probe.

“We do see it as an important step on the road to a more comprehensive system for tracing food items” during outbreaks, says Caroline Smith DeWaal of the Center for Science in the Public Interest.

“It will be a very good thing because we’ll have a lot more information,” adds Jean Halloran of Consumers Union. But, “you can still be fooled by the COOL label.”

How? There are bunches of exceptions. Fresh strawberries get a label but not chocolate-covered ones. Raw peanuts? Label. Roasted ones? No label. Those popular pre-washed salad mixes? Sometimes.

Here are some common questions as shoppers navigate the change:

Q: What does the new law require?

A: That retailers notify customers of the country of origin — including the U.S. — of raw beef, veal, lamb, pork, chicken, goat, wild and farm-raised fish and shellfish, fresh or frozen fruits and vegetables, peanuts, pecans, macadamia nuts and whole ginseng. (The aim was big agricultural commodities; ginseng was added for fear of imports masquerading as U.S.-grown.)

Q: Where will I see the country of origin?

A: Anywhere it fits. The rubber band around asparagus; the plastic wrap on ground beef; the little sticker that says “Gala” on an apple. If a food isn’t normally sold in any packaging — such as a bin of fresh green beans or mushrooms — then the store must post a sign.

Q: Aren’t many foods already labeled?

A: Some fresh produce already uses origin labeling as advertising. “Fresh from Florida” or “Jersey Grown” or “Vidalia Onion” tags don’t have to be changed under the new rules; the shopper should realize they’re all U.S. products.

The COOL law mandating such labels first passed in 2002, but lobbying by grocery stores and large meatpackers led Congress to delay the U.S. Department of Agriculture from implementing it. Seafood labeling was phased in first, in 2005 — a key change given recurring safety problems with fish and shellfish from certain countries, including China.

Q: What’s the biggest exception?

A: The labels aren’t for processed foods, meaning no label if the food is cooked, or an ingredient in a bigger dish or otherwise substantially changed. So plain raw chicken must be labeled but not breaded chicken tenders. Raw pork chops are labeled, but not ham or bacon. Fresh or frozen peas get labeled, but not canned peas. Raw shelled pecans, but not a trail mix.

Q: What if the foods are merely mixed together?

A: They’re exempt, too. So cantaloupe slices from Guatemala get labeled. Mix in some Florida watermelon chunks, and no label. Frozen peas, labeled. Frozen peas and carrots, no label. As for bagged salads, USDA considers iceberg and Romaine to be just lettuce, so that bag gets a label. Add some radicchio? No label.

Q: Must all stores comply?

A: No. Meat and seafood sold in butcher shops and fish markets are exempt.

Q: What if companies buy food from various places — beef from both U.S. and Mexican ranchers, for instance?

A: That’s a bone of contention between large U.S. meat producers and smaller ranchers that produce exclusively U.S. animals. Tyson Fresh Meats, for instance, says it’s too expensive to separate which of its cattle came from which country. So in a July letter to customers, Tyson said it would label all beef “Product of the U.S., Canada or Mexico.” The National Farmers Union is protesting; USDA is considering the complaints.

Q: Aren’t country labels on some processed foods?

A: Yes, tariff regulations have long required that a food put into consumer-ready packaging abroad be labeled as an import; that doesn’t apply to bulk ingredients.

Q: When does the change take effect?

A: The law goes into effect Tuesday, although USDA won’t begin fining laggards until spring. Violations can bring a $1,000 penalty.

EDITOR’s NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.

Copyright 2008 The Associated Press.
Summary

Cephalon to pay $425M for improper drug marketing

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Posted on 30th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/29/2008 6:28 PM

By MARYCLAIRE DALE
Associated Press Writer

PHILADELPHIA (AP) _ Drug maker Cephalon Inc., completing a previously announced settlement, will pay $425 million for illegally marketing a highly addictive lollipop painkiller and two other drugs for non-approved uses.

Federal prosecutors also announced Monday that Cephalon, as planned, will plead to a criminal misdemeanor for its off-label marketing.

“This company … put patients at risk for nothing more than the bottom line,” Acting U.S. Attorney Laurie Magid said at a news conference.

Doctors can prescribe drugs for uses other than what has been approved by the U.S. Food and Drug Administration, but pharmaceutical companies cannot promote such “off-label” use in their marketing.

One of Cephalon’s drugs, Actiq, was marketed to doctors for maladies including migraines and injuries when the fentanyl lollipop is a highly addictive narcotic approved only for cancer patients with severe pain, authorities said.

Cephalon encouraged off-label marketing at lavish physician-education conferences and through its compensation and bonus structure, authorities said. The company also had its sales force call on doctors who would not normally prescribe the three drugs, they said.

The off-label use proved harmful and even fatal at times, Magid said. However, the settlement does not encompass any individual cases.

Cephalon disclosed the tentative settlement last November. The Frazer-based company has signed an agreement to plead guilty to one misdemeanor count of distribution of misbranded drugs.

Cephalon also marketed Gabitril, an anti-epilepsy drug, for anxiety, insomnia and pain, authorities said. Provigil, which is approved for narcolepsy, was marketed for fatigue, among other things, they said.

The $425 million settlement includes a $375 million civil settlement, a $40 million criminal fine and $10 million in criminal forfeiture, prosecutors said.

Whistleblowers — former Cephalon sales representatives disturbed by the company’s practices — will share $46.5 million from the settlement.

Much of the money recovered will be shared by state and federal Medicaid programs that paid the tab for many of the prescriptions. Sales of Actiq soared from $50 million to $500 million from 2001 to 2006, authorities said.

Prosecutors considered charging the company with a felony, but agreed to a misdemeanor in part to preserve the company’s ability to sell the drugs to patients who need them, Magid said.

“We are pleased to have these long-standing matters behind us, while preserving our ability to participate in all federal and state health care programs, thereby maintaining the access of patients in those programs to our medications,” Jerry Pappert, Cephalon’s executive vice president and general counsel, said in a statement Monday.

Cephalon will also pay an estimated $12 million in interest.

Copyright 2008 The Associated Press.

Cadbury pulls melamine-laced chocolate from China

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Posted on 29th September 2008 by Gordon Johnson in Uncategorized

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By MIN LEE, Associated Press Writer

HONG KONG – British candy maker Cadbury said Monday it is recalling 11 types of Chinese-made chocolates found to contain melamine, as police in northern China raided a network accused of adding the banned chemical to milk.

A Cadbury spokesman said it was too early to say how much of the chemical was in the chocolates made at its Beijing plant.

“It’s too early to say where the source was or the extent of it,” said the spokesman, who declined to be identified because of company policy.

The company said its dairy suppliers were cleared by government testing.

Meanwhile, police in Hebei province arrested 22 people and seized more than 480 pounds of the industrial chemical in the raids, the official Xinhua News Agency reported.

The report said the melamine was produced in illicit plants and sold to breeding farms and purchasing stations.

Xinhua said 19 of the 22 detainees were managers of pastures, breeding farms and purchasing stations. It did not say when the raids took place.

The scandal broke this month when authorities said infant formula produced by Sanlu was causing kidney stones in babies and young children. Four infants have died and some 54,000 have become ill after drinking the contaminated baby formula.

Subsequent tests revealed melamine contamination in products ranging from yogurt to candy to pastries.

Authorities believe suppliers added melamine, which is rich in nitrogen, to watered-down milk to deceive quality tests for protein.

Cadbury said the 11 recalled chocolate products were distributed in Taiwan, Hong Kong and Australia.

U.S. companies Kraft Foods Inc. and Mars Inc. said they would adhere to a recall order of Chinese-made Oreos, M&Ms; and Snickers in Indonesia, but said they wanted to conduct their own tests with outside experts.

So far only a local agency has checked the products for melamine, but the levels found were considered very high.

“We have asked our trade partners and retailers to suspend the sales of our products in accordance to the agency’s order,” Mars Indonesia spokesman Bondan Ardi said.

Hong Kong supermarket chain PARKnSHOP also pulled its Chinese-made Oreo, M&M; and Snickers products as a precaution, spokeswoman Pinky Chan said.

Countries around the world have removed items containing Chinese milk ingredients from store shelves or banned them outright.

Authorities in China had previously arrested at least 18 people and detained more than two dozen suspects in connection with the scandal.

Copyright 2008 The Associated Press

Baby cereal latest problem in China milk scandal

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Posted on 27th September 2008 by Gordon Johnson in Uncategorized

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BEIJING (AP) — The list of products caught in China’s tainted milk scandal grew Friday to include baby cereal in Hong Kong and snack foods in Japan, while Taiwan reported three children and a mother with kidney stones in the island’s first cases possibly linked to the crisis.

The Japanese government also said it had suspended imports of milk and milk products from China, where some 54,000 children have developed kidney stones or other illnesses after drinking baby formula contaminated with the industrial chemical melamine. Four deaths have been blamed on the tainted milk.

The latest problematic foods were Heinz baby cereal and Silang House steamed potato wasabi crackers. The Hong Kong government said in a statement Friday it found traces of melamine in the products, which were both made in mainland China.

Copyright 2008 The Associated Press.

Popular Chinese candy linked to tainted milk

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Posted on 26th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/26/2008 4:47 PM

By TINI TRAN
Associated Press Writer

BEIJING (AP) _ They were Premier Zhou Enlai’s favorite late-night snack. He loved White Rabbit candy so much he gave a bag to President Nixon during his historic visit to China. But the iconic brand, beloved by generations of Chinese, took a hit after it was linked to the tainted milk scandal.

The Shanghai-based maker of the candy said Friday it had halted production because of suspected melamine contamination. The chewy vanilla-flavored White Rabbit sweets have already been pulled from shelves around Asia and in Britain.

The Guan Sheng Yuan Co. was still waiting for test results on samples of its exported products, but all sales have been stopped as a precaution, said Ge Junjie, a vice president of Bright Foods (Group) Co. Ltd., which owns the Shanghai maker.

“It’s a tragedy for the Chinese food industry and a big lesson for us as it ruined the time-honored brand,” Ge was quoted as saying by the Shanghai Daily.

The popular sweets are sold in more than 50 countries throughout Asia and the world, including most of the Chinatowns in the United States. Overseas sales have reached $160 million over the past five years.

The U.S. Food and Drug Administration recommended Friday that consumers not eat White Rabbit candy and that retailers remove it from sale. The agency also recommended avoiding Mr. Brown instant coffee and milk tea products being recalled by Taiwan’s Car Food Industrial Co. Ltd., though it said it was not aware of any illnesses in the United States linked to either the candy or the coffee and tea products.

Tests in Singapore and New Zealand this week found White Rabbit sweets were tainted with melamine, the industrial chemical that has already been found in milk and other dairy products in China. Used in making plastic and fertilizer, it has been blamed for causing kidney problems in infants and young children, sickening some 54,000 and killing four babies. About 13,000 remain hospitalized.

The widening scandal has dealt a huge blow to China’s leading candy maker, which has been producing the hugely popular sweets for about a half-century.

“White Rabbit is a famous brand, with huge brand assets. It’s almost an icon and carries lots of memories. Imagine if the same thing happened to Coca-Cola,” said Kara Chan, a professor in the communication studies department at Hong Kong Baptist University who studies branding.

White Rabbit was first produced in 1959, “in celebration of the 10th anniversary of the founding of the People’s Republic of China,” according to the company Web site.

Its historic pedigree got an even bigger boost in 1972 when the Chinese premier gave the candy, along with two pandas, as a state gift for the visiting President Nixon as a sign of friendship.

Virtually all Chinese have fond memories of the sticky, taffy-like confection wrapped in edible rice paper. With its distinctive red, white, and blue packaging and wide-eyed namesake, White Rabbit candies are ubiquitous, routinely offered up in homes throughout China.

“When we were in school, all my classmates liked White Rabbit,” said Su Yan, a 19-year-old sales clerk. “Girls would ask their boyfriends to buy it for them and the candy would be served on occasions like holiday receptions, a graduation party and wedding ceremonies.”

Retailer Carrefour and supermarket chain Jingkelong in Beijing said their stores have pulled the candy off their shelves, but other grocers, including one in the popular Silk Market, still stocked it on Friday.

Tea stall owner Yuan Yaqi, a self-described White Rabbit fan, had a 5-pound bag open beside her as she waited for customers Friday.

“I loved White Rabbit when I was a child, because I liked milk products,” she said. “I remember at every Spring Festival, my parents prepared a big dish mixed with melon seeds, peanuts and candies to be served to visiting friends. I often picked out the White Rabbits and hid them somewhere for myself.”

Yuan said she had not heard about the melamine contamination ban, but said: “If White Rabbit was gone forever, I would feel very sad.”

It’s not the first time White Rabbit has faced allegations of contamination. Last year, it was at the heart of another controversy, with the Philippines government claiming the candy contained formaldehyde and demanding a recall. The company blamed counterfeit candy for the problem.

Concern about White Rabbit candy has spread as far away as South America, where health authorities in Suriname ordered stores to stop selling it as a precautionary measure. The candy is widely available in Suriname, where people of Chinese heritage make up roughly 8 percent of the population.

In Peru, White Rabbit candy was among five milk-based Chinese products banned for import or sale by the health ministry.

Copyright 2008 The Associated Press.

Drug maker plans to disclose payments to doctors

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Posted on 26th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/24/2008 12:01 AM

By KEVIN FREKING
Associated Press Writer

WASHINGTON (AP) _ In an industry first, Eli Lilly and Co. says it will begin disclosing how much money it paid to individual doctors for advice, speeches and other services.

The drug company’s move comes as members of Congress push a disclosure bill in an effort to prevent such payments from improperly influencing medical decisions.

Beginning next year, Eli Lilly will disclose payments of more than $500 to doctors for their roles as advisers and for speaking at educational seminars. In later years, the company will expand the types of payments disclosed to include such things as travel, entertainment and gifts.

Some have voiced concerns that doctors are influenced by these payments in their treatment decisions and that this in turn can drive up medical bills. Although most physicians believe that free lunches or trips have no effect on their medical judgment, research has shown that these type of payments can affect how people act.

“The ethical handwriting is on the wall. Disclosure is coming. States are pushing for it, and once a few states do, it’s hard to imagine the federal government won’t line up behind,” said Dr. Arthur Caplan, director of the Center for Bioethics at the University of Pennsylvania in Philadelphia. “I think that’s a good thing because we have a great deal of empirical evidence that gift giving can influence behavior in terms of prescriptions, publishing positive findings but suppressing negative findings, and generating enthusiasm for new drugs.”

Eli Lilly was also the first drug company to publicly report its educational grants for medical conferences. Dr. John Lechleiter, president and CEO of the company, said that made good business sense for the drug industry.

“We’ve learned that letting people see for themselves what we’re doing is a good way to restore trust,” Lechleiter said.

In the past two years, lawmakers from both chambers of Congress introduced bills that would require drug and medical device manufacturers to disclose any payments to doctors exceeding $25, but the industry chafed at the strict reporting threshold. Eli Lilly had announced earlier that it intended to comply with key aspects of the legislation once some lawmakers agreed to a higher reporting threshold of $500.

Eli Lilly’s disclosure of payments to doctors will begin in the second half of 2009, and will cover payments made in the first half of the year. The company doesn’t plan to report payments from 2008 or earlier, noting that the legislation before Congress also did not contemplate such a look back. Gradually, the company plans to expand its registry to incorporate all payments that the Physician Payment Sunshine Act would require to be made public.

Lechleiter said that physicians who advise the company or speak at conferences about their experiences in treating patients take time away from their medical practice. That’s why they need to be compensated at fair, market rates.

“We’re oftentimes taking them away from their practice for a day or more,” Lechleiter said. “It’s a service that they’re providing and they deserve compensation for that.”

A handful of states and the District of Columbia already have disclosure laws for payments from drug companies to doctors. Those states are Minnesota, Vermont, West Virginia and Maine. None of those states require disclosure of payments from medical device makers.

Dr. Peter Lurie, deputy director of the health research group at Public Citizen, said the state laws can let patients know when their doctors have a connection to a drug firm, but the state laws are not working very well. The laws have various exemptions and sometimes don’t even disclose the information to the public, he said.

Lurie was skeptical that Eli Lilly’s announcement represented a step forward on the issue of more transparency in health care.

“There are dozens of pharmaceutical companies. This is just one of them. Most won’t follow this guideline at all, and there will be no enforcement,” Lurie said. “This is Ely Lilly’s attempt to forestall the federal legislation by saying we’re in effect complying anyway.”

Public Citizen, a consumer advocacy group, also objects to the $500 threshold for reporting. Lurie said it should be much lower — $25 per gift.

“Most of what will wind up being disclosed is speaker’s fees, consulting and research grants,” Lurie said. “But most people want to know more than that. They want to know about meals, travel and that sort of thing. A lot of people will be cut out by the $500 annual limit.”

Sen. Charles Grassley, R-Iowa, applauded Eli Lilly’s announcement, but he said he would continue to push for legislation that requires disclosure of physician payments by drug and medical device manufacturers.

“Consumers and taxpayers deserve a federal requirement that applies to all kinds of payments to physicians in every state in the nation,” Grassley said.

Grassley’s bill calls for penalties of $1,000 to $5,000 for failure to report a payment, with an annual cap of $250,000 for knowingly failing to report. The legislation would pre-empt state reporting requirements.

Aides to the senator said health groups such as the American Medical Association as well as trade groups such as the Pharmaceutical Research and Manufacturers of America support his legislation. The trade group PHRMA has expressed support for Grassley’s bill in the past.

Ken Johnson, senior vice president for the drug makers’ trade group, said payments to physicians are an important part of the effort to inform health care providers about such things as new treatment options, appropriate dosing and potential interactions with other drugs.

“We believe that improving transparency in such interactions is a laudable, but complex, goal,” Johnson said. “Any steps toward transparency should be structured in a way that would not chill these important exchanges.”

Copyright 2008 The Associated Press.

FDA cracks down on eye wash and skin cream

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Posted on 26th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/23/2008 12:23 PM

WASHINGTON (AP) _ Federal officials on Tuesday launched a crackdown against several companies that market an eye wash and a widely used skin cream without government approval, saying these prescription medications could pose risks.

The eye wash, known as a balanced salt solution, is used to keep the eyes moist during surgery. Two companies, Alcon Laboratories and Akorn, Inc. have versions that are officially approved by the Food and Drug Administration, and are not affected, the FDA said in a public notice.

But three other firms are selling similar types of eye wash without federal validation of their safety and effectiveness, said Deborah Autor, who directs the FDA’s unapproved drugs initiative. They are B. Braun, Baxter, and Hospira, she said.

The skin cream contains an enzyme called papain, derived from the tropical papaya plant. It is used for treating skin ulcers from diabetes and other causes. Although such products have been used for more than 100 years, the FDA said there are no approved versions on the market. About a dozen companies market such creams in a lucrative business worth about $50 million a year.

The agency said it has received more than 300 reports of serious reactions to the eye wash, and about 40 reports on the papaya creams, including some that said the ointment was of no help to patients and others describing life-threatening allergic reactions.

Companies making the unapproved products must file for FDA approval, or cease production by Nov. 24. Violators face FDA seizures and other legal action.

Unapproved drugs, many of which pre-date federal regulation, are a continuing problem for the FDA. The agency estimates that about 2 percent of all prescriptions written each year are for unapproved drugs, or about 72 million scripts.

Copyright 2008 The Associated Press.

Scientist accused of selling rocket data to China

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Posted on 26th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/24/2008 6:15 PM

NORFOLK, Va. (AP) _ A scientist who heads a high-tech company in Newport News has been charged with illegally selling rocket technology to China and offering bribes to Chinese officials, federal prosecutors said Wednesday.
Shu Quan-Sheng, 68, made an initial appearance in U.S. District Court in Norfolk and is being held in jail until a bond hearing Monday.
Shu, the president of AMAC International Inc., is charged with two counts of violating the federal Arms Control Act and one count of bribery. If convicted, he faces up to 10 years on each arms count and five years for the bribery charge.
It could not be determined whether Shu has hired a lawyer. A phone message left at his company was not returned.
According to a criminal complaint unsealed Wednesday, Shu sold technology to China for development of hydrogen-propelled rockets. The Chinese government is developing a space launch facility in the southern island province of Hainan that will house liquid-propelled launch vehicles designed to send space stations and satellites into orbit.
The complaint also accuses Shu of bribing Chinese officials to award a $4 million hydrogen liquefier contract to a French company acting as an AMAC intermediary.
Shu is a naturalized U.S. citizen who was born in Shanghai. His company also has offices in Beijing.
Federal authorities in recent years have prosecuted more than a dozen cases of either traditional spying or economic espionage related to China. U.S. officials have warned in the last year of increasing espionage efforts by Beijing.

Copyright 2008 The Associated Press.

China dairy brand won't survive tainted formula

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Posted on 24th September 2008 by Gordon Johnson in Uncategorized

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Date: 9/23/2008 11:59 PM

WELLINGTON, New Zealand (AP) _ China’s Sanlu milk brand — the company at the center of China’s tainted baby formula scandal — won’t recover from the damage it has suffered, its New Zealand partner said Wednesday as it slashed the value of its holding in the company.

Tens of thousands of Chinese children have sought medical care, nearly 13,000 have been hospitalized and four infants have died because of Chinese-made infant formula contaminated by the industrial chemical melamine.

The Chinese government has now taken control of Sanlu Group Co., 43 percent owned by New Zealand’s Fonterra Cooperative, and shut down its operations, Fonterra Chief Executive Andrew Ferrier said at a briefing.

Told that Chinese authorities had now reported Sanlu received complaints about its infant formula as early as December 2007 but failed to alert authorities until Aug. 2, Ferrier said, “If these allegations prove to be true, then I’m appalled.”

“Sanlu has been damaged very badly by this tragedy,” he told reporters as he announced Fonterra’s annual results.

“The (Sanlu) brand cannot be reconstructed,” Ferrier said, adding he “can’t see clearly at this point” whether Sanlu group “will stay intact.”

He noted melamine contamination “is in dairy products across the whole country,” with 22 Chinese companies caught up in the scandal.

If it was true that local Chinese officials didn’t report the contamination to the central government until Sept. 9 as Beijing now claims, “then I am shocked,” he said.

“We were under the belief that people were aware at all levels” by early August, he said, adding, “It could have been that people were fooling us … at the local authority level.

He said he would not speculate when asked whether there had been a cover-up of the scandal because the Olympic Games were about to start in Beijing at the time the contamination was first reported by Sanlu on Aug. 2.

Ferrier again insisted that Fonterra “pressed” for an immediate public recall of Sanlu infant formula from that time — a step only taken on Sept. 9 after the New Zealand government alerted Beijing authorities to the poisoned formula.

“We pushed as hard as we could in the system,” he said Wednesday.

Fonterra, which trades dairy products in 140 countries, would now introduce “more comprehensive testing for every conceivable poison … round the world” in milk it purchases, he said, adding, “You can never be 100 percent absolutely certain against a criminal contamination of your supply chain.”

Ferrier said “we don’t know” when asked if Fonterra retains confidence in Sanlu’s board and management.

“You can bet Fonterra is gun shy about this whole thing and we need to get to the bottom of it,” Ferrier said. “There will be material changes to management and governance of this investment.”

While Sanlu had been profitable in 2007 and 2008, Ferrier said Fonterra had slashed the value of its investment in the Chinese dairy group by US$139 million to an estimated US$62 million.

Fonterra has poured nearly US$200 million into the joint venture since buying a 43 percent stake in December 2005.

Company Chairman Henry van der Heyden said the melamine contamination “is a criminal event,” but added his board was unanimous that Fonterra remain “committed to China.”

Copyright 2008 The Associated Press.

China: 'Out of control' dairy system led to abuse

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Posted on 23rd September 2008 by Gordon Johnson in Uncategorized

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Date: 9/23/2008 9:09 AM

By TINI TRAN
Associated Press Writer

BEIJING (AP) _ China’s agriculture minister acknowledged Tuesday that the country’s milk-gathering system was “out of control” and led to abuses that put contaminated dairy products in stores across Asia, sickening some 54,000 babies and killing four.

At least six Asian countries banned or curbed imports of Chinese dairy products, and the World Health Organization warned of possible smuggling of melamine-tainted infant formula across borders. The European Union told customs authorities to keep a closer eye on food imports from China.

Melamine, used to make plastics and fertilizer, has been found in infant formula and other milk products from 22 Chinese dairy companies. Suppliers trying to cut costs are believed to have added it to watered-down milk because its high nitrogen content masks the resulting protein deficiency.

Since the discovery of tainted milk was made public, China’s government has scrambled to respond. Recent days have seen a number of arrests and forced resignations of officials.

Chinese state television reported that the company at the center of the scandal, Sanlu Group Co., received complaints about tainted formula beginning last December and waited eight months to tell the local government, which then waited another month before informing higher authorities.

Agriculture Minister Sun Zhengcai told a meeting with the health and public security ministries that the industrial chemical melamine was likely added at stations that collect milk from small individual dairy farmers.

“Since milk stations began only in recent years, the country now has no specific method of supervising them, or clear-cut supervision department. The purchasing process of raw milk is basically out of control,” Sun said, according to a summary of his comments posted Tuesday on his ministry’s Web site.

“We must crack down on them with the greatest determination and the toughest measures,” Sun said in the meeting held late Monday.

A group of 316 Chinese milk producers and retailers issued a joint statement promising to keep the dairy industry clean, state broadcaster China Central Television reported late Tuesday.

Among other things, producers promised to reject sub-standard raw materials, strictly inspect production, and take responsibility for product quality. Retailers also promised closer inspections.

Sanlu had no comment Tuesday about the allegations on state television.

CCTV reported Monday night that an investigation by the State Council, China’s Cabinet, found that Sanlu had been receiving complaints about its infant formula as early as December 2007. The dairy company discovered melamine in its milk powder in June but did not report it to city officials until Aug. 2, it said.

“During these eight months, the company did not inform the government and did not take proper measures, therefore making the situation worse,” CCTV said.

The Shijiazhuang city government then failed to report the case to the Hebei provincial government until Sept. 9, CCTV said. Sanlu products were recalled from stores two days later and Shijiazhuang’s top Communist Party official fired.

Anthony Hazzard, the Western Pacific director of the World Health Organization, said 82 percent of the children made sick by the formula were 2 years old or younger.

The sick included 12,892 babies in hospitals, 39,965 who have received outpatient treatment, and an additional 1,579 patients discharged from hospitals, he said, citing China’s Ministry of Health.

Hazzard said countries had been advised to focus particularly on smuggled formula by the International Food Safety Authorities (INFOSAN), a network of 167 countries organized by the WHO and the Food and Agriculture Organization.

He said authorities do not know at this stage what countries may have received the contaminated products.

“I think the greatest fear is if there has been illegal movement of the heavily contaminated products rather than the legal movement of products that may have very low levels of melamine,” said Hazzard, speaking in Manila where the WHO’s regional headquarters is located.

The head of the Chinese agency that monitors food and product safety stepped down Monday. The resignation of Li Changjiang, who headed the General Administration of Quality Supervision, Inspection and Quarantine since 2001, comes a year after he and the government promised to overhaul the system in response to a series of product safety scares.

New regulations and procedures were introduced in an attempt to restore consumer confidence and preserve export markets after a string of recalls involving tainted toothpaste, faulty tires, contaminated seafood and in March 2007, pet food containing melamine that was blamed for the deaths of dogs and cats in the United States.

According to the Health Ministry, of the 53,000 sickened children, 12,892 remain hospitalized, with 104 in serious condition. Another 39,965 children were treated and released.

Baby formula and other milk products have been pulled from stores around the country and Chinese dairy products have been recalled or banned in Bangladesh, Japan, Singapore, Vietnam, Brunei, Malaysia and Hong Kong.

Four Hong Kong children have been reported with kidney stones.

European Commission spokeswoman Nina Papadoulaki said the EU’s 27 member states do not import baby formula or other dairy products from China.

But she said national customs authorities across the EU were asked last week to step up checks on imports of “composite products,” such as bread or chocolate, to ensure they contain no traces of contaminated milk.

One of China’s biggest milk producers, China Mengniu Dairy Co., saw its stock price plummet slightly more than 60 percent in Hong Kong trading Tuesday after its products were found tainted with the industrial chemical melamine.

Mengniu, China’s No. 1 dairy producer in total volume, said only a small portion of its products were contaminated and blamed the contamination on “the illegal acts of some irresponsible milk collection centers and raw milk dealers.”

“The board wishes to sincerely apologize for the incident and any inconvenience caused to the public,” the company said in a statement to the Hong Kong stock exchange.

Copyright 2008 The Associated Press.