birdwatcher: (Default)
[personal profile] birdwatcher
Bloomberg -- China reported 432 cases of infants with kidney stones caused by melamine-tainted Sanlu Group Co. milk powder.

Milk sellers dilute milk with water to increase inventory, and then use melamine, which mimics protein, to boost the apparent protein content, Gao said.

The problem may stem from cost pressures combined with government price-caps, according to Steve Dickinson, a partner at law firm Harris Moure Plc who has studied China's food safety system. The Chinese government has limited price increases of staple goods, including milk products, this year to reduce the impact of inflation on consumers.

``These companies aren't really permitted to price their products at a commercially reasonable price,'' Dickinson said in a telephone interview from the eastern Chinese city of Qingdao. ``Yet their superiors are beating on them to make money. Melamine allows them to get higher-rated protein content at no extra cost.''