Because China’s food sector is very intricate and globally involved, the recent melamine contamination crisis is proving to be a serious issue causing several supply chain difficulties.
The current contamination has led to Chinese milk products being banned by numerous countries, and companies are going to extreme measures to protect their reputation and disassociate their products with milk ingredients from China.
First there was lead paint, then Chinese pet foods began killing out pets, and next we were scared to brush our teeth because of contaminated toothpaste. Now we have to worry about poisonous milk products. This latest issue has led to even more degradation in China’s reputation for product safety. This is just another problem to indicate that cheaper isn’t always better.
http://businessassurance.com/the-impact-of-the-chinese-milk-crisis-on-global-supply-chains
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