Sanlu Milk Crises
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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 from China. The Sanlu incident has spotlighted the inadequacy of China's entire dairy supply chain and has forced the government and the industry to make a collective effort to restore consumer confidence in Chinese dairy products.
How did the crisis arise?
According to the investigation by China State Council, the first complaint to Sanlu about the melamine-laced milk powder was received in 2007.The first person who brought the problem to public is a father named Wang Juanping of a 13-year-old girl whom told him she had urination problem. Sanlu tried to ignore the complaint from Wang Juanping hoping he will give up with the requirement of test report of milk powder, but Wang posted his problem to internet instead. This effort was end up with compensation from Sanlu by providing four cartons of milk powder for free. Wang agreed to delete his internet post at last.
Two key actors in this crisis is Fonterra Company and New Zealand government. Sanlu had tried to cover up the news until being prompted by its New Zealand partner, Fonterra, which later alerted the New Zealand government. As Amid rising concerns, the New Zealand government finally raised the issue directly with Beijing on September 8. As a result of the milk crisis, the
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 from China. The Sanlu incident has spotlighted the inadequacy of China's entire dairy supply chain and has forced the government and the industry to make a collective effort to restore consumer confidence in Chinese dairy products.
How did the crisis arise?
According to the investigation by China State Council, the first complaint to Sanlu about the melamine-laced milk powder was received in 2007.The first person who brought the problem to public is a father named Wang Juanping of a 13-year-old girl whom told him she had urination problem. Sanlu tried to ignore the complaint from Wang Juanping hoping he will give up with the requirement of test report of milk powder, but Wang posted his problem to internet instead. This effort was end up with compensation from Sanlu by providing four cartons of milk powder for free. Wang agreed to delete his internet post at last.
Two key actors in this crisis is Fonterra Company and New Zealand government. Sanlu had tried to cover up the news until being prompted by its New Zealand partner, Fonterra, which later alerted the New Zealand government. As Amid rising concerns, the New Zealand government finally raised the issue directly with Beijing on September 8. As a result of the milk crisis, the