Archive: China’s largest milk producer investigated in bTB incident

Published 20 November 14

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China’s largest raw milk supplier is being investigated following reports it knowingly sold cows at auction that tested positive for bTB. According to press reports, several cows at one of China Modern Dairy Holdings’ units were said to be infected but it is not certain if milk from these animals was sold on to manufacturers. In response to the announcement, shares of Modern Dairy fell sharply.

Mengniu, China’s second largest dairy processor and one of the largest in the world, is also affected by the incident as it owns 28% of Modern Dairy. It relies on Modern Dairy to provide more than 70% of the milk supply for its premium brand of milk.

Since the melamine scandal in 2008, the Chinese authorities and domestic dairy processors have been trying to improve consumer confidence in domestic dairy products. The lack of consumer confidence has opened up vast opportunities for global dairy exporters in recent years and incidents such as this could add to already heightened consumer concerns over food safety.