China Set to Shut Down 20% of Dairy Producers

BEIJINGApproximately 20 percent of Chinas 800 dairy producers will lose their licenses on March 31 because they failed quality inspections aimed at preventing a repeat of the 2008 melamine scandal that sickened thousands, killed at least six children and nearly destroyed Chinas domestic dairy industry, reported the state-run Xinhua news agency.

In an effort to boost consumer confidence in dairy products, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), the Ministry of Industry and Information Technology and the National Development and Reform Commission last November ordered all dairy producers to apply for production licenses in 2011 and submit to an inspection by March 31.

Dairy firms also were ordered to install testing equipment that can test for 64 additives, including melamine, at a cost of approximately US $456,000.

The inspection results were disappointing, with 20 percent of the dairy producers in four provinces and an autonmous regionFujian, Guangdong, Shaanxi, Sichuan and Ningxiafailing quality inspections.

"Local quality supervision departments, especially those in major dairy producing areas, should speed up the inspection. Dairy producers who failed to pass the quality inspections will be forced to shut down," Li Yuanping, an AQSIQ spokesman, told China Radio International.