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Pressures and marketing push China formula use: experts
by Staff Writers
Beijing, China (AFP) Aug 07, 2013

Botulism scare milk powder off the shelves: Fonterra
Wellington (AFP) Aug 07, 2013 - New Zealand dairy giant Fonterra moved to assure parents Wednesday that tainted baby formula which sparked global safety recalls had all been removed from retailer's shelves.

Products containing a potentially deadly bug which had been distributed from China to Saudi Arabia were no longer in the shops, Fonterra chief executive Theo Spierings said.

"All the stocks have been contained, everything is out of the market. It's in warehouses and there is little or no more risk for consumers," he told reporters in Auckland.

Authorities have been scrambling to collect cans of formula since Fonterra revealed last Saturday that they contained a whey product contaminated with a bacteria that can cause botulism.

Spierings said there had been no reported cases of children falling sick after consuming the formula but acknowledged the scare had dented Fonterra and New Zealand's reputation in Asia for producing safe, top-quality foods.

He said Fonterra would investigate the cause of the scare, which has been blamed on a dirty pipe at a North Island processing plant, and seek to restore its brand.

The Auckland-based executive, who flew to Beijing this week to apologise, refused to say whether he should resign over the crisis, which threatens Fonterra's leading role in China's multi-billion dollar dairy market.

"It's not up to me to answer, I will leave that to the board," he said.

Earlier, Economic Development Minister Steven Joyce said it would be wrong to downplay the impact of the saga on New Zealand, which generates 25 percent of its exports from dairy products.

"I've read some interesting comments in the last 24 hours, people saying it's not as big as you think, well I beg to differ, it's very significant," he told Radio New Zealand.

New Zealand exported more than NZ$13.0 billion ($10.3 billion) of dairy products in 2012, with China accounting for almost NZ$3.0 billion, according to official data.

Fonterra has a near-monopoly, handling 89 percent of the country's milk production -- 15.4 billion litres in 2011.

But critics have accused it of failing to learn the lesson of a 2008 scandal, when six children died and 300,000 fell ill after a Chinese company it part-owned illegally laced milk with the chemical melamine.

While the company has insisted from the outset that public health is its main priority, Prime Minister John Key is among those who have accused it of being too slow to release information,

Fonterra has confirmed it knew about the contamination on Wednesday, July 31, but the first public notification of the problem was an 11-paragraph statement issued the following Saturday.

The carefully worded statement referred to a "quality issue" and did not reveal the bacteria was in baby formula and could cause botulism until near the end of the document.

It did not contain a list of infant formula brands that parents should avoid or say which countries tainted goods had been shipped to.

Such basic facts took days to trickle out, prompting frustrated New Zealand government officials to send their own people into Fonterra's offices to dig out the information.

Asked if heads should roll at the company, Joyce replied: "People will certainly be expecting accountability."

China's latest milk powder scare will do nothing to increase one of the world's lowest breastfeeding rates, experts say, in the face of misconceptions, economic pressures, and aggressive marketing that "brainwashes" mothers.

New Zealand dairy giant Fonterra was forced to issue recalls in countries ranging from China to Saudi Arabia following a scare over botulism, an infection that can lead to paralysis and death.

In China the scare recalled memories of a scandal over locally-produced tainted milk formula, which left six children dead and made more than 300,000 ill in 2008.

Ths scare was a key driver in a boom in imports that has seen the market for formula grow from a total $1 billion in 2002 to $9 billion this year, according to statistics from the United Nations' children's agency Unicef, and an expected $13 billion in 2015.

The demand for informal imports has at times seen supermarket shelves cleared around the world and retail purchase restrictions imposed from Britain to Australia.

Only 28 percent of Chinese mothers breastfeed for the first six months -- a figure which drops to 16 percent in urban areas.

The global average is about 40 percent, while more than 80 percent of mothers in the UK breastfeed.

Beijing was guilty of a "large marketing failure" to boost breastfeeding, said Robert Scherpbie, Unicef's chief of health and nutrition in China.

"The government is unable to market the benefits of breast milk at a very large scale, because there is this crowding-out by the other marketing from formula companies," he told AFP.

Manufacturers were "really smart with their marketing", he said.

Firms say that "they reinforce breast milk substitutes with all sorts of products that enhance learning, that makes your child smarter, and contains all types of immunogenic substances, whereas natural breast milk already has these substances", he added.

Scherpbie also said the growing Caesarean rates in China had also seen breastfeeding decrease. Just 50 percent of babies in China were delivered in hospitals in 2005, he said.

Hospital delivery is now almost universal but about half of those are Caesarean births, often with babies separated from their mothers soon after birth, making breastfeeding impossible.

Maternity leave could be extended from the current 98-day limit, Scherpbie added. But he said there was great pressure on mothers to return to work in China, where many families are supported by parents who work long hours.

Working mothers take to Internet message boards to air their frustrations over poor breastfeeding facilities in the workplace.

Yanhong Wheeler, a Beijing-based author of books on childcare and breastfeeding, said many Chinese mothers felt victimised because of a lack of basic knowledge on the quantity of breast milk a baby needs.

"The mother's family -- particularly the new grandparents and the mother-in-law -- blames the mother for starving the baby and for not having enough milk if there are any problems," she told AFP.

"And in the background of this, formula milk is everywhere. They are really aggressive about their products. They say they (products) are close to breast milk -- and that is a lie.

"I would say these companies are brainwashing, but not just mothers. Those that should be supportive are also being brainwashed."

Wheeler said babies are often cared for almost exclusively by the wider family in the first month after childbirth, when the mother is often bedridden.

Later, many Chinese babies remain in the care of grandparents when the mother returns to work.

Some formula milk providers approach mothers directly with their products and up to 52 percent of pregnant women had received a free trial, according to a survey by Beien, an Internet message board for new mothers.

"I received quite a lot of samples, mostly in small amounts and they kept coming until even after childbirth," one new mother in Beijing told AFP.

Formula companies in China -- including Abbott, Mead Johnson, Nestle, Wyeth and Yili -- were unavailable for comment.

Increasingly competitive formula companies have targeted markets in poorer countries in recent years. Campaigners have dogged Nestle for decades, claiming the company markets its products to women who would be better off breastfeeding.

Both Unicef and the World Health Organisation (WHO) recommend breastfeeding from birth to six months of age, and continued breastfeeding plus nutritious complementary foods thereafter, up to two years or beyond.

"Breastfeeding is a natural act, but also a learned behaviour which needs social and peer support," Marianna Trias, senior programme management officer for WHO in China, told AFP.

There were still "challenges... to overcome" in China, she added.

China fines baby formula firms $108 million for price-fixing: Xinhua
Beijing (AFP) Aug 07, 2013 - China has fined six mostly foreign baby formula companies a total of $108 million for price-fixing, the official Xinhua news agency reported Wednesday.

The firms fined were Mead Johnson and Abbott from the US, Dumex, a subsidiary of France's Danone, Friesland of the Netherlands, New Zealand giant Fonterra -- at the centre of a health scare this week -- and China's Biostime, Xinhua said, citing the National Development and Reform Commission (NDRC).

In a corporate statement, Mead Johnson said it had been handed a penalty of 204 million yuan ($33 million).

Biostime said in a filing to the Hong Kong stock exchange that it had been given a 163 million yuan fine.

Fonterra, which has had to recall products in several countries this week over a botulism scare, was fined 4.5 million yuan, it said.

It cooperated fully with Chinese authorities and accepted their decision, it said.

"The investigation leaves us with a much clearer understanding of expectations around implementing pricing policies which is useful as we progress our future business plans," Fonterra's president for Greater China and India, Kelvin Wickham, said in a statement.

He added that Fonterra's fine was "in the lowest range" of the penalties handed out.

The NDRC, China's top economic planner, launched the investigation into high prices it said resulted from a monopoly-like situation, mostly targeting overseas firms. Several of them announced price cuts last month.

Xinhua said that three companies -- Wyeth, which is owned by Swiss giant Nestle, Japan's Meiji, and Chinese firm Beingmate -- had been exempted from punishment in the inquiry.

The NDRC said they provided important evidence and carried out active self-rectification, it added.


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New Zealand takes charge of Fonterra milk scare response
Wellington (AFP) Aug 06, 2013
New Zealand seized control of Fonterra's response to a milk contamination scare Tuesday after criticising the dairy giant's handling of a crisis which has triggered global recalls and tainted the nation's "clean, green" image. Economic Development Minister Stephen Joyce said officials had been sent to Fonterra premises in New Zealand and Australia to ensure the company provided accurate info ... read more

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