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Dairy producers stop production as failing to get new license

04-02-2011 20:52 BJT

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China's dairy industry has been haunted by reoccurring tainted milk scandals since 2008 when dangerously high levels of melamine were detected in baby formula. This is why the General Administration of Quality Supervision, Inspection and Quarantine required all the dairy firms and baby formula makers to apply for new production certificates before the end of March.

Officials now say as many as half of China's dairy producers may go out of business.

CCTV reporter Dannielle Taffe takes us to one dairy company in Hebei province, to see how producers are reacting to the new policy.

March the 31st.

This was the last chance for producers like Handan Fuyang Dairy company to apply for the new production licenses.

Founded in 1959, the company provides 20 tons of fresh milk daily to consumers in Handan.

During two previous inspections, the factory made quite a lot of changes to improve its production line.

Li Dianhua, Chief Executive said "The company has invested some 5 million yuan to improve facilities in the factory, from the production line to monitoring center. We bought a lot of new equipment, but still failed to meet the requirement."

Li Dianhua says in order to obtain the new production licenses, the company have bought sterilizers, filling machines and other equipment.

The purchase cost the company a small fortune, but adding the new machines is the easier part.

Li Dianhua said "Designed and constructed in 1959, the company does not meet requirements posed by modern standards in all aspects. And this is the challenge we are facing."

Though much has been done to improve production procedures, the factory still failed to pass for a third time.

11 pm, the inspectors bring in the final verdict.

Wu Lei, Dairy Production License Inspector said "We require all products to be inspected, double checked, and recorded, but the factory can't meet this standard."

Having received the order, the factory halts its production. It's a big blow.

And Handan Fuyang is only one of the 74 dairy companies whose production has stopped due to lack of new licenses in Hebei.

Only 643 dairy producing companies, or about 55 percent of the country's total milk enterprises, were granted licenses to continue production by the General Administration of Quality Supervision, Inspection and Quarantine.

Officials say these companies can re-apply for new production licenses once they can make up for their shortcomings. But for now, production is at a standstill.

Editor:Xiong Qu |Source: CNTV.CN

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