Sanlu Milk Crises

1878 Words Sep 25th, 2011 8 Pages
OSCM6120
Sanlu Milk Crises #1

Background

On 12 September 2008, Sanlu Group, the biggest producer of milk powder in China, rocked the country when it admitted that its infant formula had been contaminated with the toxic chemical melamine. China's national inspection agency extended its investigation to other dairy manufacturers across the nation. Shockingly, products of 21 other dairies, including some famous Chinese brands, also tested positive for melamine. Due to consumption of melamine-laced milk products, more than 56,000 infants and young children had become sick and four babies had died from kidney failure by the end of September. The melamine scare also resulted in many countries recalling and banning goods using milk products
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The worse is neither Sanlu nor local government inspect/ supervise these milk collection stations, not to mention some of the station were found operating without valid licenses. The outsourcing which aims cost control only with no control of quality leads to crisis is not a surprise. Response from Sanlu

There were some shockingly basic steps ignored along the way. As of 3rd Aug 2008, for instance, when the formula recall was in full swing, there was nothing on Sanlu’s website to suggest anything odd was going on. No announcement. No recall information. No advisory to customers. Not hotline. No news since 14th Aug.
As well as the government officials in Shijiazhuang city had failed to report the contamination to provincial and state authorities (until 9 September) in violation of rules on reporting major incidents involving food safety. According to the People's Daily, Sanlu wrote a letter to Shijiazhuang city government on 2 August 2008, asking for help to "increase control and coordination of the media, to create a good environment for the recall of the company's problem products....to avoid whipping up the issue and creating a negative influence in society."

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