On 7 July, the China Food and Drug
Administration (CFDA) officially released the Announcement on the Treatment
Made by Changsha Food and Drug Administration on Infant Formulas Produced by
Jiabili (Hunan) Food Co., Ltd. for Excessive “Chlorine” Content.
Source: Baidu
During March-April, CFDA identified 3 successive substandard batches of infant
formula produced by Jiabili - Jubilee Super High-Quality Infant Formula (Stage
1) produced on 16 September, 2015 and 13 January, 2016 respectively and Gold
Baby Infant Formula produced on 5 January, 2016. In each case the problem
was excessive chloride content. The Changsha Food and Drug Administration
assisted in the recall and inspection.
Jiabili complained in regard to the first 2
releases and requested re-tests. Before the re-test results were released, the
company was still forced to completely suspend its production of the product.
However, the re-test results again proved the products to fail to meet the
requirement.
When it received the 3rd report about its
Gold Baby Infant Formula (Stage 1), it did not apply for a re-test.
To date the company has recalled 2,548 cans
and 13,007 cans respectively of Jubilee Super High-Quality and then 350 cans of
Gold Baby
Chloride is a necessary element for maintaining the balance of body fluid and
electrolyte. The appropriate content of chloride in infant formula is important
for gastrointestinal digestion: low content is unfavourable for digestion,
whilst excess content prevents the thyroid absorbing iodine and constrains its
secretion of growth hormone.
In addition, excess chloride content will destroy
red blood cells and adversely affect the blood's capacity to transport oxygen.
The national standard for chloride content is 12-38 mg/100 KJ.
Gold Baby Infant Formula (Stage 1, 900g)
Source: Baidu.com
Jubilee Super High Quality Infant Formula
(Stage 1, 800 g)
Source: Baidu.com
The key reason behind Jiabili's substandard
products is its lack of inspection capability – it was unable to inspect
chloride content of the WMP used. “Probably we have bugs in production and
management links, especially the professional competence of each product
inspector,” said an official in the company frankly. It is reported that since
June, the company has already suspended production at its plants.
Jiabili is a well-known infant formula producer in Hunan, and this highlights
the industry's weak technical capabilities. Hunan's dairy industry was
historically a leading light in the domestic market, and at peak Hunan Yahua
Dairy Co., Ltd. (Yahua Dairy) had achieved sales of USD300.8 million (RMB2
billion). Before 2007, it accounted for 70%+ of the provincial market, and was
a leading national dairy business.
However, the melamine scandal, the
penetration of the market by foreign infant formulas and the wider changes in
the market led to Yahua Dairy enduring a serious decline in sales, eroding its
ability to invest in its operations. In May this year it was finally acquired
by New Hope Dairy Holdings Ltd. (60% stake), being renamed as Hunan New Hope
Nanshan Liquid Milk Co., Ltd.
“Every year Hunan has about 1 million new births, and the overall mother and
baby market potential is about USD10.5-12 billion (RMB70-80 billion),”
explained Zeng Mancheng, President of the Hunan Mother and Baby Products
Association: “The infant formula category (in Hunan) is worth about
USD105.3-120.3 million (RMB700-800 million), with imported brands taking around
70% and domestic products making up the balance.
However, the 3 local companies
Yahua Dairy, Ausnutria Dairy Corporation Ltd. and Jiabili only account for
about 30% of the domestic figure, so only 10% of the local sales.”
The deficiencies in technology have a critical impact on product quality. For
instance, in July 2012, several infant formula products from Yahua Dairy were
found to have excess content of alfatoxins. If local companies are unable to
improve in this respect, their future prospects will become increasingly
constrained despite capital injections and reorganisations.
This article comes from Dairy Products China News 1607, CCM
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Tag: infant formula