Foreign cos worried over stuck-up powdered milk
Sunday, 26 October 2008
Naim-Ul-Karim
Three foreign companies whose powdered milk brands have been barred by the higher court from marketing are worried over their stuck-up products.
Officials of the companies concerned claimed that milk products worth over Tk 1.0 billion have remained stuck up at different stages, from import to marketing.
Meanwhile, the government's expert committee, formed to detect traces of melamine in imported milk of eight foreign brands, will send samples of all other powdered and liquid milk available in the local market for laboratory tests, officials said Saturday.
They said the expert committee will hold a meeting this week to discuss a device for conducting laboratory tests of other brands for fair and credible reports to remove confusion from the minds of the consumers.
"We will hold a meeting any day this week to discuss about how we can conduct laboratory tests of all other brands," Mohammad Ali Patwary, convener of the expert committee, told the FE on Saturday.
Officials in the ministry of commerce said the government is now under pressure to carry out laboratory tests of other brands to see whether all those are free from melamine or not.
The government Monday formed the committee asking to submit report by seven working days and empowered it to carry out similar tests in future on powdered milks of other brands if needed.
The confusion arose after the Dhaka University's Chemistry Department revealed that the powdered milk of eight foreign brands tested melamine positive to its investigation.
The eight brands: Australian brands Diploma and Red Cow, Danish brand Dano Full Cream, Chinese brands Yashili-1, Yashili-2, Sweet Baby-2, and New Zealand brands Nido Fortified Instant and Anlene.
Out of these eight brands, merely one tested positive for melamine at two other laboratories including that of the BSTI where tests were carried out simultaneously with the one at the Department of Chemistry, DU. The brand that tested positive in all the three laboratories was Yashili-1 of China.
However, officials said the commerce ministry will sit to discuss its next course of action after the High Court (HC) Thursday issued an order directing the government for taking immediate measures to put a ban on display and sales of eight foreign-powdered milk of brands.
Additional secretary Golam Mostakim, who is now in-charge of the commerce secretary, told the FE on Thursday that "On receipt of High Court order we will set next course of action."
However, company officials said powered milk products worth about Tk1.0 billion have remained stuck up at different stages from import to marketing, which is matter of grave concern for them.
They said the banks are particularly concerned as letters of credit (L/Cs) worth over Tk500 million opened for import of powder milk are now kept pending.
"We can't confirm the banks, which opened L/Cs on deferred payment for us, whether or not we could pay them as sales come under halt," one official said.
Following the HC order, the managements of the three foreign companies said they have already instructed distributors and traders of their products to stop sales and display of the milk items.
Sales director of Nestle Bangladesh Ltd Mohsin Ahmed said: "We have already instructed not to sale and display our products."
Showing due respect to the High Court order, Ahmed Kabir, country director of the Arla Foods-Bangladesh, said his company has also asked to stop sale and display of Dano powdered milk.
When asked, he said in case of negative test result his company will withdraw products from the market.
SA Mollick, managing director of New Zealand Dairy product, said: "There is no complaint against our products, which the company markets in 140 countries across the world."
"Our products are completely safe," Mr. Mollick claimed, adding he also asked to stop sale and display of their products.
Three foreign companies whose powdered milk brands have been barred by the higher court from marketing are worried over their stuck-up products.
Officials of the companies concerned claimed that milk products worth over Tk 1.0 billion have remained stuck up at different stages, from import to marketing.
Meanwhile, the government's expert committee, formed to detect traces of melamine in imported milk of eight foreign brands, will send samples of all other powdered and liquid milk available in the local market for laboratory tests, officials said Saturday.
They said the expert committee will hold a meeting this week to discuss a device for conducting laboratory tests of other brands for fair and credible reports to remove confusion from the minds of the consumers.
"We will hold a meeting any day this week to discuss about how we can conduct laboratory tests of all other brands," Mohammad Ali Patwary, convener of the expert committee, told the FE on Saturday.
Officials in the ministry of commerce said the government is now under pressure to carry out laboratory tests of other brands to see whether all those are free from melamine or not.
The government Monday formed the committee asking to submit report by seven working days and empowered it to carry out similar tests in future on powdered milks of other brands if needed.
The confusion arose after the Dhaka University's Chemistry Department revealed that the powdered milk of eight foreign brands tested melamine positive to its investigation.
The eight brands: Australian brands Diploma and Red Cow, Danish brand Dano Full Cream, Chinese brands Yashili-1, Yashili-2, Sweet Baby-2, and New Zealand brands Nido Fortified Instant and Anlene.
Out of these eight brands, merely one tested positive for melamine at two other laboratories including that of the BSTI where tests were carried out simultaneously with the one at the Department of Chemistry, DU. The brand that tested positive in all the three laboratories was Yashili-1 of China.
However, officials said the commerce ministry will sit to discuss its next course of action after the High Court (HC) Thursday issued an order directing the government for taking immediate measures to put a ban on display and sales of eight foreign-powdered milk of brands.
Additional secretary Golam Mostakim, who is now in-charge of the commerce secretary, told the FE on Thursday that "On receipt of High Court order we will set next course of action."
However, company officials said powered milk products worth about Tk1.0 billion have remained stuck up at different stages from import to marketing, which is matter of grave concern for them.
They said the banks are particularly concerned as letters of credit (L/Cs) worth over Tk500 million opened for import of powder milk are now kept pending.
"We can't confirm the banks, which opened L/Cs on deferred payment for us, whether or not we could pay them as sales come under halt," one official said.
Following the HC order, the managements of the three foreign companies said they have already instructed distributors and traders of their products to stop sales and display of the milk items.
Sales director of Nestle Bangladesh Ltd Mohsin Ahmed said: "We have already instructed not to sale and display our products."
Showing due respect to the High Court order, Ahmed Kabir, country director of the Arla Foods-Bangladesh, said his company has also asked to stop sale and display of Dano powdered milk.
When asked, he said in case of negative test result his company will withdraw products from the market.
SA Mollick, managing director of New Zealand Dairy product, said: "There is no complaint against our products, which the company markets in 140 countries across the world."
"Our products are completely safe," Mr. Mollick claimed, adding he also asked to stop sale and display of their products.