17 dairy enterprises blacklisted

On 27 February, the China Food and Drug Administration (CFDA) released a list of 17 infant formula producers found to have violated food safety standards in 2015.

These include some well known companies such as Feihe, Shaanxi Jinniu Dairy Co., Ltd., Shaanxi Hongxing Meiling Dairy Co., Ltd. (the only publicly traded goat milk dairy processor), Shaanxi Hongqi Dairy Science and Technology Co., Ltd., Milk Goat (China) Goat Dairy Co., Ltd. (Milk Goat), YangLingShengFei Dairy Industry Co., Ltd. (YLSF Dairy) and Xi'an Hongxing Dairy Co., Ltd. Typically their failings related to problems involving substandard production conditions, inadequate supply chain management and loopholes in production management and control.

For instance,

YLSF Dairy: failed to test product samples when it changed its nutrient mix supplier

Milk Goat: used an unlicensed supplier of nitrogen, whilst its own inspection standards for fructo oligosaccharide (FOS) missed elements such as mould and yeast, so contravening the Infant Formula Production Licensing Examination Rules

“The listing this time is only related to production system and principle, not to product quality,” said dairy commentor Song Liang, “It is a regular examination carried out by CFDA, aimed at constantly striving for perfection. It is expected that enterprises can take precautions in production system, environment, equipment, etc.” In addition, he also stated, “This time the standard followed is very strict. In the future, such examination will be ‘normal’.”

                                        Formula Manufacturers Cited as Substandard for Food Safety, 27 February

Note: Problems found in these companies: licensed production conditions, procurement of raw/ auxiliary materials, control on production procedure, materials storage, inspection management and qualification of inspectors, etc.
Source: China Food and Drug Administration

Shakeout of small formula enterprises

Most of these businesses are small, especially the goat milk formula producers. “This indicates that the government has strengthened its supervision. The small- and medium-sized enterprises that lag behind in upgrading their production processes will be eliminated in the future,” commented a trade source.

“As the government enhances its supervision, the requirements of infant formula producers will be higher. Big enterprises can bring their operations up to standard rapidly whilst smaller ones struggle to do so as they are coping with the day-to-day issues of milk supply, production and market competition. It is inevitable that they are found to be substandard,” said dairy expert Wang Dingmian. 

“The quarterly test has now become a monthly test, which exerts greater pressure on small enterprises. They may be forced to withdraw from the market,” said Liu Senmiao, General Manager of Shijiazhuang Junlebao Dairy Co., Ltd.’s infant formula department: “As the supervision of infant formula gets stricter, the industry shakeout will be accelerated.”

This article comes from Dairy Products China News 1603, CCM

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Tag: infant formula

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