An escalating counterfeit scandal on infant formula has triggered panic among consumers, dealing a blow to China’s baby formula industry.
On August 3, 2013, the world's biggest diary exporter Fonterra said a bacteria, Clostridium botulinum, which can cause botulism and affects muscles, had contaminated 40 tonnes of its whey protein, most of which was sold to manufacturers to make their own products, including milk powder. A day later, China banned all milk powder imports from New Zealand. Hong Kong recalled 80,000 cans of Cow & Gate baby formula. Other companies that were affected include Shanghai Yanjiu; Dumex Baby Food, a Danone brand; Wahaha Health Food and Wahaha Import & Export; Coca-Cola (China) and Abbott.