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Tuesday, September 16, 2008

Can it get worse? China's Baby Formula Debacle

China Finds Melamine In More Baby Formula from the WSJ.

China has now found Melamine in 22 other manufacturer's Baby Formula products.

This quote provides a clue:
China's dairy industry has boomed over the past five years. Milk formula alone is expected to be a $3.45 billion-revenue industry in 2008, up 191.7% since 2003, according to market researcher Euromonitor International.

Translation - demand outstripped production, so the milk was watered down and Melamine added to it appeared to have enough protein in the Milk so the milk suppliers could meet the market needs.

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