September 26, 2008 / 12:04 PM / in 11 years

China Milk sees no sales impact from milk scandal

SINGAPORE, Sept 26 (Reuters) - Singapore-listed China Milk Products CHNM.SI said on Friday it did not expect its sales of raw milk to be affected by the tainted milk powder scandal that has led to bans on China-made milk products around the world.

The China-based seller of raw milk said its milk contained no additives and, given a shortage of quality dairy cows in China, added it was cautiously optimistic that it could continue securing orders from current customers.

“Although the Group expects that there may eventually be some consolidation and/or adjustments in the milk production industry in China, the Group believes that there is still sufficient underlying consumer demand for dairy products in China,” the firm said in a statement.

Shares of China Milk closed 8.2 percent higher on Friday, but remain 23 percent down this month, after thousands of Chinese infants were hospitalised from milk formula tainted with melamine, an industrial chemical used to cheat quality checks.

The firm said it has sent samples of its milk to an independent laboratory as a precautionary measure.

It believes there will also be no adverse material effect on its businesses which produce and sell bull semen and dairy cow embryos. (Reporting by Neil Chatterjee; Editing by David Cowell)

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