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The Incident of Carcinogenic Milk Power about Yahua Dairy Industry

Posted on November 15, 2019 by Josephine

Food safety news background

The Incident of Carcinogenic Milk Power Is Still in Fermentation Because the Yahua Dairy Industry in Greatly Hit Is Still Producing the Unqualified Product.

On July 22, Guangzhou Municipal Administration for Industry and Commerce disclosed the result in sampling inspections in dairy products and milk-containing food in the second quarter of the second circulation in 2012. Five batches of infant formula milk powder from Hunan Yahua Dairy's series of Nanshan Milk Powder were inspected. The content of aflatoxin M1 exceeds the standard. Only one batch of problematic products is discontinued, while four batches of companies are still producing.

The incident of the aflatoxin in Nanshan milk powder did not completely subside in July, and Nanshan milk powder producer Hunan Yahua Dairy Holdings Co., Ltd canceled production license of infant formula milk powder. The news pushed Yahua Dairy to the public opinion healthy once again.

The China Business News reporter learned from the relevant person in charge of Yahua Dairy that the cancellation of the production license for the infant formula milk powder (wet process) is a production base of Yahua Dairy. The production and market supply of infant formula will not have an impact. The cancellation of the production license is not necessarily related to the previous quality incident, the person in charge stressed.

Cancel production license

On September 27, the Hunan Provincial Quality Supervision Bureau issued a notice on its official website to cancel the production license for the infant formula milk powder (wet process) of Yahua Dairy. 

The news about the suspension of Nanshan milk powder was very quickly. On October 12, Yahua Dairy issued a clarification announcement denying the suspension of production. It explained that the canceled production license was only for the factory with a wet process. In the future, the company will continue to produce infant formula milk powder for the baby with a dry process. At the same time, Yahua Dairy revealed that its branch and subsidiary had 7 production licenses, including 3 production licenses of infant formula milk powder. The manufacturers are Hunan Changsha Yahua Dairy Co., Ltd located in the high-tech food industry base of Wangcheng County, Hunan Province, Hunan Yahua Dairy Holdings Co., Ltd, and Inner Mongolia Hulunbeier Yahua Dairy Co., Ltd located in Chengbei Development Zone, Chengbu Miao Autonomous County, Shaoyang City, Hunan Province. The factory that canceled the production license was the Chengbu County factory.

Public opinion generally connect the reason of cancelling the production license with the sampling test result with highly carcinogenic substance aflatoxin in 5 batched of Nanshan milk power inspected in the second quarter of 2012 of the circulation in dairy products and milk food by Guangzhou Industrial and Commercial Bureau on July 22, which is considered to be the measure of Yahua Dairy to eliminate negative news.

It is reported that after the occurrence of the quality incident, the Hunan Provincial Quality Supervision Bureau ordered the enterprises to stop production and sales, recall the problem products, and carry out internal rectification. Yahua Dairy also immediately issued an apology statement, recalled the problem products, accepted consumer’s returns, suspended production of problem products, promised to conduct a comprehensive self-examination and rectification of the process in production and focusing on raw materials and testing methods.

As a result, sales of Yahua Dairy’s products were hit greatly. On October 16, our reporter found that in the BBK supermarket opposite the Nanshan Beihui Headquarters Building in Changsha City, Yasha Dairy, on the whole, two rows of milk powder in shelves, only a few cans of Nanshan middle-aged milk powder and pregnant milk powder were found hidden in among other brands. In the meantime, it is almost hard to find without looking carefully. The reporter's inquiry about Nanshan milk powder, the supermarket staff said, if you want to buy Nanshan milk powder, just look at other brands. Nanshan has an accident and has been canceled the production, and may not be in the future.

In the clarification announcement, Yahua Dairy pointed out that the Hunan Yahua Wangcheng Dairy Science and Technology Park built-in 2008 has been officially put into production. Taking into account that the dry process is more beneficial to control the quality of the product than the wet process in producing infant formula milk powder and other factors, we cancel the production license of infant formula milk powder (wet process).

According to the reporter's inquiry, four among the five batches of Yahua Dairy's problematic products were produced by Hunan Changsha Yahua Dairy Co., Ltd., and only one batch was produced by Hunan Yahua Dairy Production Co., Ltd. (Chengbu County factory). The factory that was shut down was the Chengbu County factory.

Yahua does not want to link the reason for cancellation in production licenses to the quality incident. However, dairy industry expert Wang Dingmian said that if it is related to dry process, the production license for infant formula (wet process) can be automatically revoked. At this time, the company is eager to cancel the production license, which may be because the market share of their products had an impact due to the quality incident. According to the website of the State Administration of Quality Supervision, the production license expires on March 30, 2014.

People who do not want to be named and tell reporters that the quality problem is fatal to the company. If the punishment is imposed on the involved enterprises, it is also a good confession for consumers. But Nanshan may be in a great hit. The remove of the Chengbu factory is in exchange for the understanding of the consumers, but the punishment is the small number of assets for the company. If the punishment is used for publicity, it will probably bring more vicious effects. Therefore, the company treats the punishment in low key.

In the interview with this reporter, Longfei, the executive director of Yahua Dairy, said that these two things have nothing in connection. He revealed that in management, Chengbu Factory has stopped production of infant milk powder in June 2012. At present, only adult milk powder is produced. After the production license of the infant milk powder is canceled, two production lines in liquid milk will be added for supplying the fresh milk in around market.

The survey in the company

To explore the current situation of two factories in Hunan Province, the reporter started from Changsha South Bus Station, took a 5-hour bus to Wugang, a county-level city in Shaoyang City and took a two-hour bus ride to Wugang to find the company. (Chengbu County Factory). The last section of the road to China Dairy Holdings Co., Ltd is full of narrow mountain roads, and it has to pass through several villages and towns. The roads on the villages are occupied by vendors, so the passing of motor vehicles is very laborious. 

The door of the Yahua City Step Factory was closed, and it was quiet. A guard sipped tea in the guard room and prevented the entry of outsiders. The reporter has stayed at the door for nearly an hour and finally, a staff member came out of the factory. According to the staff member, the factory had already been discontinued, due to the quality incident. He said that he did not know about other problems and quickly gone.

However, outside Hunan Changsha Yahua Dairy Co., Ltd., what the reporter saw was another scene. The sound of the machine in the factory is clear, and there are cars or transport cars coming in and out from time to time. At around 11:30 pm, workers began to leave the factory one after another. A factory employee told the reporter that after the Nanshan milk powder was found to defect with the problem, the company stopped production for nearly half a month and resumed production later. But I heard that the old factory(Chengbu Factory) is not produced.

Compared with the inconvenience of the traffic in the Chengbu factory, the Wangcheng factory has shown great advantages. The entire expressway can reach the center of Changsha in just one hour. Since transportation costs have been rising all the way, the drawbacks of Chengbu Factory in this respect are obvious.

Discussion on this incident

Aflatoxin M1 is not a new term for the public. At the end of 2011, a batch of products produced by Mengniu Dairy (Meishan) Co., Ltd. was found to exceed 140% of Aflatoxin M1, which caused a sensation in the industry. The explanation given by Mengniu at that time was that a batch of feed-in individual local pastures had mildew due to the wet weather. It caused the exceeding aflatoxin in the standard in the raw milk after the cows eating the moldy feed. 

Carcinogens in milk are usually not produced by cows. In this case, the results of the investigation conducted by the Changsha Food Safety Office for the Nanshan Milk Powder Incident are that the cows were fed a diet contaminated with aflatoxin B1. Aflatoxin B1 is a toxic substances for people health. Aflatoxin B1 was hydroxylated in the body and Aflatoxin M1 is mainly produced in milk and urine.

Some commentators believe that Yahua Dairy has canceled the production license for infant formula milk powder, and it has brought an end to the quality incident. This incident is not so simple to settle. In this type of incident, the control of the source in the feed is particularly important. In the past three months, Yahua has not announced it’s problem in the source of feed.

It has been reported that the business model of Nanshan Ranch, the birthplace of Nanshan Dairy, is now implemented as company + base + farmer. The company will raise funds for grass harvesting and replenishing grass, and Yahua will be responsible for acquiring milk from the farm and giving Nanshan Ranch management fees. As Yahua Dairy has reduced the compensation for meadow in recent years, the funding for the development and protection of meadow is seriously lacking. The milk supply of Nanshan Ranch in the past two years only accounts for 6.4% need of the milk source for Yahua Dairy. To meet the needs of the production, Yahua has a large number of acquisitions of milk sources, so the source of aflatoxin is more complicated.

Yahua believes that whether the feed is qualified or not should be monitored in the pasture area, and the responsibility is not in the dairy company. He also said that after this incident, Hunan Province has increased support for relatively backward counties and cities, and provided support in testing equipment.

Liu Hailin, secretary-general of the Hunan Dairy Association, told this reporter that there are two possibilities for mildew feed. The one is that there is a problem in purchasing, and the other is that the feed is improperly stored after purchase in the pasture. In both cases, the responsibility lies in a pasture with a mistake in supervision and testing. When the milk source is accepted, Dairy companies should detect the milk by standard strictly. It is the responsibility of the dairy company that does not detect problematic products.

The emergence of aflatoxin in the company's products clearly shows that these companies have problems in self-discipline and management. It can even be said that the dairy companies in detection have some major safety hazard in the processing of production and quality control, Wang Dingmian said bluntly. The detection of aflatoxin belongs to a routine self-inspection project. It is also obvious that the self-inspection system of the enterprise is not perfect enough, otherwise, it will not seriously exceed the standard.

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