Sanlu Case
SANLU’ S MELAMINE-TAINTED MILK CRISIS
Case Facts:
• Incidence of finding high levels of melamine in milk and milk products for infants produced by a famous dairy processing company of China known as Sanlu.
• Death of 3 babies and 6200 diagnosed with kidney problems and cases of kidney failure due to consumption of tainted milk.
• The news of discovery of tainted milk was hidden from the central government by the local offices and the Company itself.
• Whistle blowers/critiques were silenced with bribes (monetary and other incentives) and efforts were made to bribe media, but media didn’t give in.
• Fonterra pulled out of the Chinese market and withdrew its products which were sourced from china from the market.
• Surprisingly, the use of melamine in dairy products was an open secret in China and was also encouraged.
• The sourcing of milk was done over a geographical scattered area which made it difficult to supervise the operations.
• The sourcing of milk was done over a geographical scattered area which made it difficult to supervise the operations.
• Whenever any policy measure/cost measure was announced, the farmers were the only one who had to face a setback in terms of revenue.
Case Issues:
• The adulteration of infant milk with melanine - a harmful content which affected the children
• The attempt to prevent the news from breaking out in public to avoid public defamation.
• The resort to malpractices in face of competition and a need to reduce prices
• Prior and Post role of Government in handling the case
Stand of the Company:
The company though apologized publically and declared withdrawal of the tainted products from the market but still it continued selling products with 10mg/kg of melamine and replaced the high level products with lower ones which were still harmful for the public. The company blamed raw
Case Facts:
• Incidence of finding high levels of melamine in milk and milk products for infants produced by a famous dairy processing company of China known as Sanlu.
• Death of 3 babies and 6200 diagnosed with kidney problems and cases of kidney failure due to consumption of tainted milk.
• The news of discovery of tainted milk was hidden from the central government by the local offices and the Company itself.
• Whistle blowers/critiques were silenced with bribes (monetary and other incentives) and efforts were made to bribe media, but media didn’t give in.
• Fonterra pulled out of the Chinese market and withdrew its products which were sourced from china from the market.
• Surprisingly, the use of melamine in dairy products was an open secret in China and was also encouraged.
• The sourcing of milk was done over a geographical scattered area which made it difficult to supervise the operations.
• The sourcing of milk was done over a geographical scattered area which made it difficult to supervise the operations.
• Whenever any policy measure/cost measure was announced, the farmers were the only one who had to face a setback in terms of revenue.
Case Issues:
• The adulteration of infant milk with melanine - a harmful content which affected the children
• The attempt to prevent the news from breaking out in public to avoid public defamation.
• The resort to malpractices in face of competition and a need to reduce prices
• Prior and Post role of Government in handling the case
Stand of the Company:
The company though apologized publically and declared withdrawal of the tainted products from the market but still it continued selling products with 10mg/kg of melamine and replaced the high level products with lower ones which were still harmful for the public. The company blamed raw