EPA: Miss. companies sold illegal Chinese engines

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Posted on 29th May 2009 by Gordon Johnson in Uncategorized

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Date: 5/28/2009 10:47 PM

TIMOTHY R. BROWN
Associated Press Writer

JACKSON, Miss. (AP) — Three Mississippi companies are accused in a federal lawsuit of illegally importing and selling more than 78,000 small engines made in China.

The engines did not meet federal air pollution standards, the Environmental Protection Agency and the Department of Justice said Thursday in a joint news release.

The lawsuit marks the government’s first court action in an effort to enforce emissions standards for portable generators, water pumps and other small engines, the EPA said.

The lawsuit was filed in U.S. District Court in Washington, D.C., against PowerTrain Inc., Wood Sales Co. Inc., and Tool Mart Inc., all based in Golden, a northeast Mississippi town near the Alabama state line.

A search of the Mississippi Secretary of State’s Web site found Oneal Wood of Golden listed as president of all three companies.

Wood did not immediately return a phone message left at his home.

“That’s just the government for you,” a Wood Sales spokesman told The Associated Press about the lawsuit. He did not give his name and immediately hung up the phone.

A phone listing could not be found for PowerTrain Inc. and a message left with a spokeswoman for Tool Mart was not immediately returned.

EPA spokesman Dave Ryan said the engines were sold across the country online and through telemarketing. EPA estimates the 78,000 engines have contributed to excess emissions of more than 150 tons of hydrocarbons and nitrogen oxides and more than 5,000 tons of carbon monoxide.

The complaint says the “non-road” engines were imported and sold by the companies from September 2002 through at least May 2007. The engines emit carbon monoxide, volatile organic compounds and nitrogen oxides, that contribute to smog.

The lawsuit seeks civil penalties and for the companies to remedy the violations.

Copyright 2009 The Associated Press.

China to sell assets of scandal-hit milk company

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Posted on 14th February 2009 by Gordon Johnson in Uncategorized

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Date: 2/14/2009

BEIJING (AP) — A Chinese court plans to auction off the assets of the Chinese dairy at the heart of a tainted milk scandal that sickened hundreds of thousands of children and was blamed for killing six, reports said Saturday.

Sanlu Group Co. was declared bankrupt by a court in its north China base of Shijiazhuang on Thursday. Its real estate holdings, buildings and equipment will be auctioned March 4, along with its investment rights and interests in three other dairy companies, newspapers and the official Xinhua News Agency reported.

Fonterra, a New Zealand farmer-owned cooperative that owns 43 percent of Sanlu, has already written off its $139 million investment. Fonterra was responsible for alerting Chinese authorities about the tainted milk scandal last August.

Sanlu was one of 22 Chinese dairy companies whose products were found to contain high levels of the industrial chemical melamine, which led to the deaths of six babies and caused 294,000 others to suffer urinary problems, according to the government.

At least a dozen lawsuits have been filed against state-owned Sanlu, but they are caught in a legal limbo as courts have neither accepted nor refused the cases — a sign of the scandal’s political sensitivity.

The scandal highlighted a widespread practice among dairy suppliers of watering down milk they bought from farmers and then adding melamine to it to artificially boost its apparent protein levels. The tainted milk was then sold to dairy companies.

Courts have sentenced more than 20 people for adulterating milk or failing to respond to the tainting, including Sanlu’s former general manager and chairwoman Tian Wenhua, who was given a life sentence. Tian, 66, has appealed.

Copyright 2009 The Associated Press.

Trials open for 9 over China tainted milk scandal

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Posted on 29th December 2008 by Gordon Johnson in Uncategorized

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Date: 12/29/2008

By CHRISTOPHER BODEEN
Associated Press Writer

BEIJING (AP) — Nine people went on trial Monday in connection with China’s tainted milk scandal, state media reported, following the announcement of steps to compensate the families of hundreds of thousands of children harmed by contaminated infant formula.

The tainted formula gave babies painful kidney stones and news of the problem sent parents around the country rushing their babies to emergency rooms for tests to see if they were affected. Chinese dairy exports such as chocolate and yogurt were also found to be tainted, triggering a slew of product recalls elsewhere in Asia and in Europe, Africa and Latin America.

At least four of the suspects on trial Monday could be given the death penalty.

Hearings were held in the northern city of Shijiazhuang, where the company at the heart of the scandal — Sanlu Group Co. — is headquartered, along with three other cities in surrounding Hebei province, according to state broadcaster CCTV and the Xinhua News Agency.

The first trials in the case began for six men on Friday.

All 15 on trial have been charged with producing and selling melamine. The industrial chemical was added to raw milk because — like protein — it is high in nitrogen and can make protein levels appear higher.

Sanlu’s chairwoman and general manager, Tian Wenhua, is scheduled to go before a Shijiazhuang court Wednesday.

At least six babies died and 294,000 other children suffered kidney and urinary problems from drinking the baby formula made from the contaminated milk.

The four suspects in the Shijiazhuang trial are accused of endangering public safety and could face sentences ranging from 10 years in prison to the death penalty. It identified them as Gao Junjie, his wife Xiao Yu, Xue Jianzhong, and Zhang Yanjun.

The four are accused of having produced 200 tons of a mixture of melamine and malt dextrin, a food additive made from starch, that they marketed to milk producers, according to the reports.

Between November 2007 and August 2008, they sold 110 tons to milk producers — including Sanlu — for a total of 1.23 million yuan ($180,000), the reports said.

Although melamine, a common industrial chemical used to make plastics and fertilizer, is legal to produce and sell in China, CCTV said the court believed the men’s actions had “greatly harmed the health and safety of the consumers, especially infants, therefore violating the criminal law of China.”

It was unclear if CCTV was quoting the court. Calls to the Intermediate People’s Court went unanswered.

Xinhua said the other five are charged with producing and selling poisonous food, but did not give their names or other details.

The trials come amid moves by authorities to end a national disgrace that highlighted widespread problems with food safety and corporate and governmental malfeasance.

On Saturday, China’s Dairy Industry Association said 22 dairy producers would make a one-time cash payment to families of victims and establish a fund to cover medical bills for future health problems.

Lawyers — who are seeking to bring a lawsuit against the companies involved — say they understand most children who suffered kidney stones from the tainted milk would get 2,000 yuan ($290), while sicker children would be paid 30,000 yuan ($4,380).

Chinese courts have rejected all claims filed by the victims’ families, including a lawsuit filed this month by lawyers representing 63 defendants that sought nearly 14 million yuan ($2 million) in compensation from Sanlu.

The state-owned company has been declared bankrupt according to New Zealand’s Fonterra Group, which owns a 43 percent stake in Sanlu.

___

Associated Press researcher Yu Bing contributed to this report.

Copyright 2008 The Associated Press.

Nearly 5,000 Chinese officials punished for corruption

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Posted on 26th December 2008 by Gordon Johnson in Uncategorized

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Date: 12/26/2008 6:54 AM

BEIJING (AP) — Nearly 5,000 higher-level Chinese government officials were punished for corruption over the past year, state media reported Friday.

The officials — all above the county-head level — were involved in corruption, bribery, acting against the public interest and other violations of discipline or the law said Gan Yisheng, deputy head of the Communist Party’s Central Commission for Discipline Inspection, according to the official Xinhua News Agency.

In the worst cases, a total of 801 officials were legally prosecuted for crimes, he said. He vowed to step up anti-graft efforts and “win trust from the people with actual results.”

Gan said government inspection departments investigated 144,000 cases that led to penalties for 146,000 lower-ranking government officials. Losses of 6 billion yuan ($900 million) were recovered through the anti-corruption efforts.

Copyright 2008 The Associated Press.

Melamine already in global food chain: experts say

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Posted on 31st October 2008 by Gordon Johnson in Uncategorized

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Date: 10/31/2008

By GILLIAN WONG
Associated Press Writer

BEIJING (AP) _ First it was baby milk formula. Then, dairy-based products from yogurt to chocolate.

Now chicken eggs have been contaminated with melamine, and an admission by state-run media that the industrial chemical is regularly added to animal feed in China is fueling fears the problem could be more widespread, affecting fish, meat and who knows what else.

Peter Dingle, a toxicity expert at Murdoch University in Perth, Australia, said, however, that aside from the tainted baby formula that killed at least four Chinese infants and left 54,000 children hospitalized just over a month ago, it is unlikely humans will get sick from melamine.

The amount of the chemical in a few servings of bacon, for instance, would simply be too low, he said.

But Dingle and others said China should have cracked down sooner on feed companies that have boosted their earnings by fortifying their products with the chemical, which is normally used in the manufacture of plastic and fertilizers.

Rich in nitrogen, melamine gives low-quality food and feed artificially high protein readings.

“Traders can make a lot of profit by doing it,” said Jason Yan, the U.S. Grains Council’s technical director in Beijing.

Extremely high levels of melamine — as found in the Chinese baby formula — can cause kidney stones, and in extreme cases can bring on life-threatening kidney failure.

But while scientists say it’s not dangerous to ingest small amounts, they cannot be definitive because there have been no tests on melamine’s effects in humans. Until the contaminated baby formula became public in September, there was never any reason to.

That leaves consumers worldwide, particularly parents, worried about food products from China, and even those made elsewhere with ingredients imported from Chinese companies.

Among those not taking any chances is Pranee Suankaew, a homemaker in Bangkok, Thailand.

“Let’s go, let’s go,” the 37-year-old mother said as she tugged her 4-year-old away from the candy aisle where he eagerly eyed a bag of M&Ms.; “We’re getting you fruit and a lollipop. There’s no milk in that.”

She said she usually gives in to avoid tantrums. “But this time, I told him, no, no, no.”

Experts say melamine sometimes accidentally leaches into the food supply in low levels, from things like plastic dinnerware. It can also seep in from some pesticides and fertilizers.

But in China it’s become clear that the chemical is deliberately added.

The baby formula set off a global recall of foods made with Chinese dairy products and sparked raids in supermarkets across Asia. Twelve truckloads of candy, yogurt and other dairy-based goods were burned in Indonesia’s capital, Jakarta, just this week.

In light of Wednesday reports by state media on the widespread use of the chemical in animal feed, health experts say the government clearly knew melamine was being added for more than a year, since contaminated dog food made it to markets in North America, but didn’t crack down on producers as promised.

With the scandal escalating, Chinese leaders are now desperate to clean up the country’s image, making dozens of arrests in recent weeks and firing local and even high-level officials for negligence.

John Chapple, a Singapore-based adviser to Sinoanalytica, a food analysis laboratory in the Chinese city of Qingdao, said the decision to allow state media to report on the years of melamine use seems to show the government is ready to be more active in dealing with food safety.

“However, one is not going to change a hierarchical government system overnight,” he added. “It is usually going to be slow to start to react to a crisis, but quick to finally nail it.”

Though China has vowed to boost inspections for melamine contamination, it will be difficult to monitor the countless small, illegally operating manufacturers found across the country, other experts said.

“It could take five or even 10 years” before some companies stop adding the chemical to food products, said Yan, of the U.S. Grains Council.

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Associated Press writer Robin McDowell in Jakarta, Indonesia, contributed to this report.

Copyright 2008 The Associated Press.

Australia recalls products in tainted milk scandal

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Posted on 20th October 2008 by Gordon Johnson in Uncategorized

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Date: 10/19/2008 11:30 PM

SYDNEY, Australia (AP) _ Australian officials ordered the recall of a milk drink and cake brand after tests showed they were contaminated with melamine, bringing to six the number of Chinese-made products withdrawn in Australia following China’s tainted milk scandal.

A spokeswoman for Food Standards Australia New Zealand said Monday that Orion brand Tiramisu Italian Cake with Cheese Cream and Dali Yuan brand First Milk vanilla-flavored drink were recalled Friday after government tests revealed the Chinese-made products contained low levels of melamine, the industrial chemical that has sickened tens of thousands of Chinese children.

A sample of the cakes was found to contain 4.4 parts per million of melamine, while the milk drink had 5.8 ppm, Food Standards spokeswoman Lydia Buchtmann said. The agency has set the safe limit at 2.5 ppm.

The other products previously recalled in Australia are Kirin Milk Tea, Lotte Koala Biscuits, Cadbury Eclairs and White Rabbit candies.

Milk powder contaminated with melamine has been blamed for the deaths of four infants and for sickening about 54,000 others in mainland China. Hong Kong has also found 10 children with kidney stones who had consumed Chinese-made milk products.

Melamine is used in the manufacturing of plastics, fertilizer, paint and adhesives. Health experts say ingesting a small amount poses no danger, but in larger doses, the chemical can cause kidney stones and lead to kidney failure.

Copyright 2008 The Associated Press.

Chinese government summons major dairy companies

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Posted on 17th October 2008 by Gordon Johnson in Uncategorized

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Date: 10/17/2008 7:35 AM

By HENRY SANDERSON
Associated Press Writer

BEIJING (AP) _ China summoned five of its major dairy companies to a meeting Friday over the fate of Sanlu Group Co., the company at the center of a tainted milk scandal that has sickened thousands and led to the deaths of four children, state media reported.

The five companies were brought to Beijing to discuss the purchase of the company, the 21st Century Business Herald, a major business daily, reported Friday.

The government is trying to revive its dairy industry and contain the fallout after baby formula contaminated with melamine was blamed for the deaths of four infants and the sickening of about 54,000 other children in China.

The Health Ministry said Wednesday that 5,800 children were still hospitalized — six of them in serious condition. In Hong Kong, the Department of Health said Friday two more children have developed kidney stones after drinking melamine-laced milk, bringing to 10 the total number of children with milk-related kidney stones.

Sanlu, a majority state-owned company whose products were the most heavily tainted, is now largely defunct, with companies looking to scoop up its assets. It is 43 percent-owned by New Zealand’s Fonterra Group dairy.

The companies invited to the meeting were Chinese beverage-maker Wahaha Group, Wondersun, Inner Mongolia Yili Industrial Group Co., Sanyuan Foods Ltd. and Heilongjiang-based Feihe Dairy, which is a wholly owned subsidiary of New York-listed American Dairy Inc.

Both Sanyuan and Wahaha have been discussed in state media as likely buyers of Sanlu’s assets, but the paper also quoted Wondersun’s board chairman as saying they were considering it. But any buyer would have to take on Sanlu’s debt and the possibility of compensation to consumers, the paper said.

Jin Biao, vice president at Yili, confirmed that a meeting was called by the government but said the main focus was on how to improve the management of Sanlu’s milk collection stations and how to deal with the company’s capital. He said Yili had sent a representative.

“It is too early now to talk about the acquisition,” he said in a telephone interview with The Associated Press.

Lianfang Chen, an analyst at Beijing Orient Agribusiness Consultant Co., said the meeting would discuss resuming milk production at Sanlu’s factories, keeping its workers employed, and also resume buying raw milk to keep farmers employed.

“Though Sanlu does not have any value as a brand, its processing facility, raw milk bases, production capacity and experienced workers and managerial expertise still have great value. That’s what makes a selling point,” Chen said.

Fonterra chief executive Andrew Ferrier said Friday that discussions continuing around Sanlu “include the possibility of Sanlu being acquired by a third party,” and Fonterra is involved in a number of the discussions.

But he said the long-term future of Sanlu “and Fonterra’s stake in the company” remained uncertain. Fonterra wrote down $85 million of its stake last month, but has retained on its books an estimated $38 million worth of its investment.

A spokesman for Fonterra said they did not send anyone to the meeting but expect to be briefed by representatives of Sanlu, who are taking part.

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Associated Press Writer Ray Lilley in Wellington, New Zealand, contributed to this article.

Copyright 2008 The Associated Press.
Summary

Settlement to be argued in big pet food case

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Posted on 14th October 2008 by Gordon Johnson in Uncategorized

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Date: 10/14/2008 5:08 AM

By GEOFF MULVIHILL
Associated Press Writer

MOUNT LAUREL, N.J. (AP) _ Thousands of pet owners whose dogs and cats died last year after eating contaminated pet food traced to China could be close to a $32 million settlement.

A federal judge in Camden was to hear oral arguments on the final proposal Tuesday. The court also will consider any filed objections.

The settlement allows pet owners to apply for expenses associated with deaths and illnesses, including the costs of veterinarians, time missed from work to care for sick animals, replacement pets, burial expenses and even property damaged because animals got sick.

In addition to the $8 million they had already agreed to pay owners of sickened pets, the pet food companies would put up $24 million for the settlement.

The case began in March 2007, when companies that make or sell pet food — including Menu Foods Income Fund, which makes dog and cat food under about 90 brand names from its base in Streetsville, Ontario — agreed to settle lawsuits with pet owners.

The U.S. Food and Drug Administration later found that the food contained melamine, a chemical used to make plastics. The chemical was traced to contaminated wheat gluten imported from China.

In April, lawyers for representing plaintiffs and dozens of companies announced they had struck a deal for pet owners in the United States and Canada.

Under the terms, even those who did not keep any receipts for either the pet food or the costs of the pets’ illness and death could get up to $900 per animal.

If any money is left after all plaintiffs are paid, it would go to animal-welfare charities.

But the agreement did not include any money for the humans’ pain and suffering from injuries to their pets. That has upset some pet owners.

One, Donna Elliott, of Fries, Va., for instance, sent U.S. District Judge Noel Hillman a picture of her late boxer, Abby.

“How do you answer the statement on the claim form, what was the value of your pet?” she asked. “My companion was everything in the world to me.”

In one court filing, the parties that struck the settlement explained: “This settlement does not pretend to do what it cannot — which is to make people fully whole for their incomprehensible losses,” the filing said. “The settlement is, however, a reflection of strenuous efforts to secure the maximum economic relief available.”

As of Sept. 30, more than 9,500 people in the United States and Canada had made claims, while just over 100 people had preserved their rights to sue separately. Relatively few — 28 — had filed objections to the settlement.

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On the Net:

Claim information: http://www.petfoodsettlement.com

Copyright 2008 The Associated Press.

Tainted milk, a baby's death and lawsuit in China

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Posted on 13th October 2008 by Gordon Johnson in Uncategorized

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Date: 10/13/2008 4:18 PM

By CARA ANNA
Associated Press Writer

XINXING, China (AP) _ Heartbroken at the sudden death of their baby boy, the Yi family struggled to forget what they thought was a tragic twist of fate. They burned his clothes, toys, everything but a single photo and the baby formula he drank.

Then health officials suddenly arrived at the family’s rural home last month with shocking news: Milk contaminated by an industrial chemical might have killed their son. On Monday, the Yis filed a lawsuit against the company at the heart of the scandal — the first court action by a family of a child who died.

Unrecognized at the time, 6-month-old Yi Kaixuan’s death in May made him among the first victims in what would become a nationwide scandal. It would be another four months before the dairy, Sanlu Group Co., revealed there was a problem, and the government later confirmed there was widespread contamination of China’s milk supply. Four infants have died and tens of thousands of children were sickened.

“I have no idea how any of this happened,” Yi Yongsheng, the baby’s slight, soft-spoken father, told The Associated Press on Sunday as he ran his fingers through his hair.

His wife, Jiao Hongfang, crouched outside in the courtyard cooking silently. She had collapsed in grief at her son’s death and again in September when officials came with news of the tainted milk.

“She doesn’t want to face this anymore,” Yi said.

The scandal is one of the worst tainted food crises in China in years. It has exposed shoddy practices in the booming dairy industry and raised questions about when the government first knew dairy products were contaminated with melamine, a chemical used in making plastics and fertilizers. Unscrupulous suppliers are suspected of adding it to watered-down milk to mask the resulting protein deficiency in quality tests.

Sanlu — a state-owned company whose products were the most heavily tainted — is now largely defunct, with the Xinhua News Agency reporting Monday that several other companies were vying to scoop up its assets.

Worst affected, however, have been China’s poor, who turned to Sanlu products because they were less expensive.

In places like Xinxing, a town of brick and packed-earth houses surrounded by corn fields in the roughly terraced hills of western China, families have little. Yi spends most of the year working construction jobs in one of China’s largest cities, Xi’an, while Jiao tends their small plot of land. The family makes about $580 a year.

The baby boy was their second child; they have a 5-year-old daughter. China’s strict family planning rules allow many rural Chinese to have a second child in order to try for a boy, in a nod to traditional preferences for male heirs.

Infant formula for the baby was expensive but necessary. Jiao’s breast milk wasn’t enough, Yi said, so they started supplementing with milk powder. By his second month, formula was all the infant was fed. They thought the formula was healthy, and Sanlu was a brand with a good reputation.

“And it was just a little cheaper than the others,” Yi said — $2.60 for a package that would last three or four days.

But on April 20, the baby wouldn’t stop crying and had problems urinating. Jiao took him to the village clinic, but they couldn’t pinpoint a problem.

Alarmed, Yi left his construction job and returned home. The family headed for the Gansu provincial capital, Lanzhou. On April 30, they took the baby to two city hospitals. Doctors were stunned, Yi said. They said they’d never seen a child with so many kidney stones, and the situation was critical.

A frenzy of testing followed, and the bills piled up past $145. The parents didn’t sleep all night, waiting.

Around noon the next day, a doctor came to tell them their baby had died.

No one at the time, the doctors included, seemed to link the kidney stones and the infant formula.

Terrible luck, the family decided. In keeping with local custom that treats the death of a child so young as a tragedy best quickly forgotten, they burned everything. They kept a single photo of the child — shown with his grandfather during Chinese New Year in February — and the infant formula. It was a luxury and could be used for another child. There was no funeral.

“Burning those things was like walking away,” Yi said. “To keep looking at them and remembering would be too sad.”

The family did their best to forget the boy, until Gansu provincial health officials arrived in mid-September. They asked many questions and took samples of the baby formula, then told the family to wait — they would call later with information.

Since then, the family hasn’t heard a word.

The Gansu provincial health department declined comment, its spokesman saying they do not give telephone interviews.

Yi only considered undertaking legal action after a friend contacted a Shanghai-based lawyer who’d grown up in the nearby city of Tianshui.

Attorney Dong Junming took the case without charge and started adding up the damages: $6,700, which Dong estimates equals 20 years of the average Gansu farmer’s salary; $146,000 for emotional damages.

“Frankly? Sanlu won’t pay out that much,” Dong said Sunday at a cafe in Lanzhou, where he was making final preparations for filing the lawsuit. “But we think this situation is really shocking, so we’re going to ask.”

Such liability suits are rare in China, despite growing public awareness of an individual’s legal rights. A group of some 100 lawyers who offered free legal advice to victims of the tainted milk scandal have faced official pressure to withdraw from the cases, attorney Chang Boyang told the AP. After the massive earthquake in May, some parents whose children died in the collapse of shoddily built schools said they were offered cash in return for signing pledges not to sue.

So far, just two other known lawsuits have been filed in the tainted milk scandal, both by families of babies who were sickened but survived. In both — one in southern Guangdong province, the other in central Henan — it is not clear whether the courts will accept the lawsuits. In the Yis’ case, Dong said he was told the court would make a decision Tuesday.

In Xinxing, Yi is relying on Dong to handle the legal details. He studied no further than ninth grade, and Jiao only went to primary school. They had placed their future in their children.

Both Yi and his wife are only 30, and Yi said some day they might try for another child, a sibling for their daughter.

The girl, Yi Xuan, really liked her baby brother, Yi said. “But maybe she’s already forgotten him.”

Yi sat on a low stool as he spoke, the single photo of the baby on a table beside him. The daughter, pink-cheeked and shy, hid behind him but eventually noticed the photo. She smiled and said the baby’s name.

She reached for the photo. But Yi looked hard at her and pushed it away.

___

Associated Press researchers Ji Chen in Shanghai and Zhao Liang in Beijing contributed to this report.

Copyright 2008 The Associated Press.

China dairy sued over infant's toxic milk death

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Posted on 13th October 2008 by Gordon Johnson in Uncategorized

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Date: 10/13/2008 6:12 AM

By CHRISTOPHER BODEEN
Associated Press Writer

BEIJING (AP) _ The family of a baby whose death has been blamed on toxic milk filed suit against one of China’s largest dairies Monday, while another dairy ensnared in the scandal said it was a victim of unscrupulous subcontractors.

The lawsuit against Shijiazhuang Sanlu Group Co. was filed over the May 1 death of 6-month-old Yi Kaixuan in the northwestern city of Lanzhou, the family’s lawyer said.

It is the first to be filed over a child who died from drinking the tainted milk and asks for almost $160,000 in damages.

Milk collection stations and individual farmers are accused of watering down milk to increase volume, then adding the industrial chemical melamine to increase protein levels. Melamine, used mainly in plastics and fertilizer, is high in nitrogen and can make milk appear to contain more protein, which is what quality tests measure.

The practice has been blamed for causing the deaths of four infants and sickening 54,000 others, with 10,000 still hospitalized.

Speaking on a television talk show late Sunday, the president of Bright Dairy said his company, one of the largest in the Chinese dairy industry, had been “too nice” toward milk collection stations that bought milk from farmers.

Large dairy companies typically buy raw milk gathered from small farmers at milking stations and collection centers, often by subcontractors responsible for safety testing. Safeguards were often lax and major milk producers have been criticized for not carrying out adequate testing.

The comments appeared aimed at restoring consumer confidence in the wake of the scandal that has dinged the reputation of some of China’s best-known food companies.

“We thought they were operating in good conscience,” Guo Benheng said on state television’s economics channel.

“I’d say we made an innocent mistake, although an innocent mistake is still a mistake. We are definitely making corrections,” Guo said, according to a transcript of his remarks posted on official Web sites Monday.

Appearing on the same show, the vice president of Mengniu Dairy, one of the country’s largest, said the scandal had affected the company profoundly.

“This sort of thing just tears your heart apart,” Zhao Yuanhua said.

The Yi family’s lawyer, Dong Junming, said he turned the lawsuit in at Lanzhou’s No. 2 Intermediate People’s Court where clerks told him they would notify him Tuesday as to whether it would be accepted.

At least two other lawsuits have been filed against Sanlu — the company at the center of the uproar — in recent weeks by parents of children suffering from kidney stones. It is not clear if courts will allow these suits to progress.

Product liability lawsuits are still relatively rare in China, and lawyers have complained of government pressure to withdraw from the cases.

Chinese milk powder and other food products have been banned from more than a dozen countries, worsening an increasingly painful downturn in China’s crucial export sector and threatening household incomes in the vast, mostly poor countryside.

The scandal has struck a blow to China’s efforts to build global brand names and establish healthy business practices.

Newspapers on Monday reported Chinese beverage-maker Hangzhou Wahaha Group was considering buying dairy assets from Sanlu Group, the milk-maker accused of attempting to cover up melamine tainting.

Sanlu is 43 percent owned by New Zealand dairy giant Fonterra Group, which has already slashed the value of its investment. China’s government took over and suspended Sanlu’s operations last month, and company heads have been detained for investigation.

China’s dairy industry has sped ahead in recent years, far outpacing regulatory structures aimed at ensuring safety and quality. Since the tainting scandal broke last month, strict standards for allowable melamine levels in food have been set and 5,000 government inspectors dispatched to provide 24-hour supervision over the industry.

Last week, police arrested a dairy farmer accused of producing 600 tons of melamine-spiked protein powder. Eight dairy farm owners and milk buyers were also arrested for purchasing the powder.

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Associated Press writer Cara Anna contributed to this report from Shanghai.

Copyright 2008 The Associated Press.