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The source of Fuyang’s substandard powdered milk is exposed
The Epoch Times
6/10/2004



Fuyang, Anhui Province, is being exposed as the origin of the substandard milk powder which caused deaths of infants through out China due to malnourishment. The infants who suffered were called “large-head babies” because of cranial swelling and atrophy of the limbs. According to the investigation, there are more than 50 powdered milk companies in Pengxi City of Taishun County, Fuyang’s industrial area. Some of them do not even have a place to produce their products. Yet, they have already received health and safety permits from the local government health department. They have a working license from the business department.

According to the China Youth Daily, the Women’s and Children’s hospital of Zhubo City has discovered another “large-head baby.” The milk powder that is used there is from Pengxi City of Taishun County in Fuyang’s industrial area. Most of the products from those companies are low in protein and are substandard milk powders.

Mr. Xu Hongbao worked for three milk powder companies, in the areas of Taishun, Cangnan, and Fuding, on the border of Zhejiang and Fujian. Xu states he earned over 3 million yuan (US $360,000) in over a decade from milk powder. Compared to other merchants from Wenzhou, this is not a large sum. Xu Hongbao also owns stock in two small companies in Taishun and Fuding.

There are at least 50 factories in the milk powder industry located in over 10 counties. Many of them are underground workshops whose products do not meet the minimum protein standards. There are also companies located on Federal Highway 104 and the Provincial Highway 58 in Pingyang, Leqing (Zhejiang Province) and Zherong (Fujian Province). They use these highways as lines of transportation forming a “silver triangle” for producing substandard powdered milk. The managers of many powdered milk factories in Henan, Heilongjiang, Inner Mongolia and Anhui Provinces are from Cangnan. Cangnan was also discovered some of China’s main sources of substandard powdered milk.

The benefits provided to workers at the factories are reported to be good and investors have earned money. Key technical staff and salespeople are also beginning to look for investors to work with.

According to one of the managers from Panda Diary Company, at the peak of the dairy industry in Cangnan, there were over 30 factories producing milk powder. Many powdered milk factory managers and owners nationwide were former employees of the dairy factories in Cangnan. Now the managers have already entered their third and fourth generations in the factories.

Taking the substandard factory from Taishun County as an example, the company lacks equipment. The largest factory’s registration fees were 800,000 yuan (US $96,400), while the smallest factory’s registration fees were not even 50,000 yuan (US $60,240). This caused the lack of equipment problem. Even these firms received permits and licenses from the Taishun local health and business departments.

According to Mao Fangchi, director of Taishun County Quality Monitoring Bureau, they have discovered that Taishun milk powder factories have poor equipment and many of them do not even have the ability to produce adequate products. They should not have been issued licenses.

According to Taishun County’s Health Department manager, Zhao Jianguo, “The companies are threatening to halt production unless we give them a green light. We loosened the requirements, because of the pursuit for foreign investment. The rules of the milk powder factories are unclear, therefore they approved them.”

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