Sanlu Was First Banned in 2004, then Reinstated

Why Both Fonterra & NZ Govt Must Have Known About Tainted Baby Formula Long Before Their  Corporate Manslaughter Case

The following article, which is reprinted in full in view of public interest, is another damning testimony why both Fonterra and New Zealand Government must have known about Sanlu tainted milk practice by as early as December 2004.

Tainted Milk Powder Banned Four Years Ago – But back on shelf with authorities’ backup

Sep 21, 2008 (Last Updated: Sep 22, 2008) –
http://en.epochtimes.com/n2/china/tainted-milk-four-years-ago-4573.html

By Xin Fei
Epoch Times Staff

The reprint of communist regime’s mouthpiece Xinhua News by China Pharmaceutical News on December 7, 2004, 'Sanlu Powdered Milk: Turn Crisis into Turning Point' ((Screenshot))

Deception that began four years ago continues, as the furore of tainted powdered milk causing kidney stones in babies spreads throughout China.

The public learned, earlier this month, that milk powder tainted with melamine has been found to be the cause of kidney stones in infants across China. At least four babies have died as a result.

In an incident four years ago, following the “Big Head Baby” media report in Fuyang City, Anhui Province, Sanlu’s powdered milk had been blacklisted as inferior.

Shortly after, Sanlu was removed from the blacklist, by the communist regime’s food administration, and reinstated.

Many people in Fuyang, knowing that Sanlu powdered milk had quality problems, suspected the company of manipulating the local and central government officials and using the Chinese state media in efforts to restore its reputation.

Media Reports Indicated No Crisis

A December 7, 2004 reprint of state-run Xinhua news by China Pharmaceutical News headline reading: ‘Sanlu Powdered Milk: Turn Crisis into an Advantage’ provided a clue that the group was aware the powdered milk had been tainted.

On January 16, 2004, Zhang Guangkui of Yongzhuang Village, Luzhai Town, Linquan County, Fuyang City, Anhui Province complained that the Sanlu infant powdered milk formula that he bought was tainted.

On April 22, the front page of local Fuyang newpaper Yingzhou Evening News printed a list of tainted powdered milk brands resulting from the spot check. Sanlu infant milk formula was 32nd on the list.

On the same day, Sanlu Group deputy general manager Zhang Zhenling and other high level staff members hurried to Fuyang City to negotiate with the local government. A statement said:  “ … a mistake was made by related workers” and Fuyang City apologized.

A few days after April 22, 2004, markets all over the country were compelled to remove and seal Sanlu’s powdered milk.

Sanlu’s sales fell, its losses exceeded tens of millions RMB (around US$10 million).

On April 26, the Ministry of Public Health, State Administration for Industry and Commerce, General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) issued an emergency notice requesting local law-enforcing departments to allow normal sales of Sanlu powdered milk.

On the first working day after the “May 1” seven-day-long holidays that year, AQSIQ announced that as a result of a spot check, 30 companies producing powdered milk had been declared as safe.

Sanlu was the first one on the list.

Public Relations Crisis Management Efforts

According to a Xinhua News report in 2004, on April 27, Sanlu and several dozen dairy enterprises conducted good faith symposiums in several cities. The theme was  ‘Resisting Killer Powdered Milk’.

They jointly released the first ‘Dairy Business Good Faith Pledge’ in the country, firmly promising not to produce or sell inferior quality dairy products.

Within one day, Sanlu had notified 93 media nationwide, and 19 media removed Sanlu powdered milk from their blacklist reports.

On April 28, 2004, organized by Specific Association for Child Food, Chinese Society for Food Science and Technology, Sanlu and nine food security trusts donated 4,985 boxes of infant powdered milk to Fuyang City in an experimental bid for commercial enterprises.

After these events, in many business strategy documents and articles, Sanlu was used as model for managing crisis successfully.

In September 2008, when poisonous Sanlu powdered milk was first exposed, Sanlu vigorously denied any contamination in the powdered milk and attempted to redeem itself by citing conclusions given by the authoritative quality examination departments.

According to Tencent QQ financial channel report on September 11, Sanlu Group media department indicated;

“Sanlu is a brand product of powdered milk, the production is strictly in accordance with national standards and the product is qualified. Currently, there is no evidence indicating illness caused by Sanlu powdered milk.”

Since the incident came to light last week, the Sanlu Group has continued to gloss over it and deny involvement, while passing the blame onto dairy farmers.

As pressure increases domestically and internationally, the communist regime’s officials, at all levels, have ducked for cover saying that Sanlu knew the facts all along but failed to file a report.  Copyright the author or respective news agency. [Emphasis are added by FEWW]

Related Links:

• Fonterra Files (Index page)
• Tainted Milk Powder Banned Four Years Ago-But back on shelf with authorities’ backup

• Anything for Power: The Real Story of China’s Jiang Zemin – Chapter 24
• Another Substandard Powdered Milk Casualty: “Big-Head” Baby Discovered in Guangzhou (May 2004)

• Tainted Milk Powder Banned Four Years Ago

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