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Mass Recall of Milk Produce By: Alex Chen What has happened? • Singapore banned the import and sale of milk and all milk products • Wellcome and Park'n Shop cleared their shelves of Mengniu brands • Hong Kong government recalled Yili products, after tests found milk, ice-cream and yoghurt to be contaminated with melamine • Starbucks stopped offering milk supplied by Mengniu at two-thirds of its outlets across China What’s happening now? • people are extremely angry to learn that more and more products have been found to be unsafe • police have arrested 18 people in connection with the scandal and plan to punish more people involved with the scandal • more than 150 people, excluding infants, are said to have acute kidney failure Why? • first came to light in milk powder that killed four infants and sickened more than 6,000 others • General Administration of Quality Supervision, Inspection and Quarantine, tested ordinary milk from three dairies • 10% of the milk from the country's two largest Mengniu Dairy Group and Yili Industrial Group – contains melamine • suspected of diluting milk to cut costs, then adding melamine to make it appear higher in protein Price of Milk Products Supply and Demand Curve E1 E2 S1 D2 Quantity of Milk Products D1 Determinants • Government Intervention • Taste http://news.bbc.co.uk/2/hi/ asia-pacific/7624969.stm