Government pushes formula makers to raise product quality

Laying foundations

Song, the independent expert, conceded that changing public perceptions of Chinese-made formulas will be a long-term task.

"It will take quite a long time for us to see the effects of the regulation, but it lays the foundation for the industry's image in the future and targets the attitudes of future parents. Overseas brands are usually cheaper and have better reputations, but local brands are catching up," he said, referring to the inefficient techniques and machinery that result in higher production costs for domestically made formula and push prices higher.

Mao Xueying, a professor of food science and nutritional engineering at China Agricultural University in Beijing, said: "The right one is the best one. People's dietary structures vary from nation to nation. So the problem is that overseas formula may lack certain nutritional components or even contain too many. For example, a lack of iodine in some overseas formulas may present problems for babies in China."

Ling, a former employee of Fonterra, a nutrition company in New Zealand that was a major shareholder in Sanlu during the 2008 scandal, said Chinese-made formulas are now high-quality products.

"Every dairy industry insider knows that a decade has passed since the scandal and now the standards of both formula manufacture and inspection in China could not be higher. But that's of little importance because it is the consumers who should know this and recognize the products. To restore confidence, authoritative international third-party inspectors should be introduced into the nation's formula market. Boasting about our own formulas won't do the trick," said Ling, who preferred to only give her surname.

James Tong, chairman of the Australian-Chinese Primary Industry Council, agreed with Ling's comments and backed her idea of independent inspections.

"Pollution and a lack of arable land in China mean it is reasonable for local brands to build factories overseas and they should be encouraged to do so. However, because more products will be made overseas it will be necessary to have a third-party, global quality-tracking platform," he said.

He added that it is essential to regulate manufacturers, and the industry urgently needs to reassure consumers because that will be key to rebuilding confidence.

"It's strange that even a decade after the scandal, Chinese parents still don't use local formula because both domestic and foreign-made products used to have quality problems. However, a recent case involving Lactalis Group, an international dairy company based in France, may offer some clues on how to handle adversity," he said.

On Jan 12, the Lactalis website said the company had recalled all infant formula products manufactured and conditioned in its facility in Craon, France, following suspicions that some were contaminated with salmonella agona.

Two days later, 37 infants were reported to have been taken ill after drinking the formula, according to The Guardian, a British newspaper.

"The company reacted swiftly by quickly identifying the factory involved, followed by an instant recall of products and offers of compensation," Tong said.

To restore consumer confidence, he suggested that instead of investing billions into advertising their charitable donations to the poor, Chinese formula manufacturers should establish a joint insurance fund to deal with breaches of safety in the industry nationwide.

"It is important to rebuild the image of Chinese companies as professional and responsible. We can't place the entire responsibility on the government, whose main role is that of a watchdog," he said.

"Finding a solution to the problem is an experiment in reshaping the 'Made in China' brand. If we can make this breakthrough, I think problems in other industries could be solved quickly in the future."

Wang Xiaodong contributed to this story.