Transcript Mass Recall of Milk Produce

Mass Recall of Milk Produce
By: Alex Chen
What has happened?
• Singapore banned the
import and sale of milk and
all milk products
• Wellcome and Park'n Shop
cleared their shelves of
Mengniu brands
• Hong Kong government
recalled Yili products, after
tests found milk, ice-cream
and yoghurt to be
contaminated with
melamine
• Starbucks stopped offering
milk supplied by Mengniu
at two-thirds of its outlets
across China
What’s happening now?
• people are extremely
angry to learn that more
and more products have
been found to be unsafe
• police have arrested 18
people in connection with
the scandal and plan to
punish more people
involved with the scandal
• more than 150 people,
excluding infants, are
said to have acute kidney
failure
Why?
• first came to light in milk powder that killed four
infants and sickened more than 6,000 others
• General Administration of Quality Supervision,
Inspection and Quarantine, tested ordinary milk
from three dairies
• 10% of the milk from the country's two largest Mengniu Dairy Group and Yili Industrial Group –
contains melamine
• suspected of diluting milk to cut costs, then adding
melamine to make it appear higher in protein
Price of Milk Products
Supply and Demand Curve
E1
E2
S1
D2
Quantity of Milk Products
D1
Determinants
• Government
Intervention
• Taste
http://news.bbc.co.uk/2/hi/
asia-pacific/7624969.stm