China orders milk products pulled
Link: http://www.cnn.com/2008/WORLD/asiapcf/10/14/tainted.milk.ap/index.htmlSummary
A national affecting event took place last month as dairy suppliers in China added the industrial chemical melamine to watered-down milk to fool quality control tests and make the product appear rich in protein. Melamine can cause kidney stones as the body tries to eliminate it and, in extreme cases, lead to life-threatening kidney failure. Approximately four infants has been killed and tens of thousands of children nationwide has been sickened due to this. China ordered all milk products more than a month old are being pulled from store shelves for emergency testing, as another child in Hong Kong developed kidney stones after consuming melamine-contaminated products. All milk powder and liquid milk produced before September 14 must be tested. Moreover, no products would be sold unless they pass quality tests and are labeled as safe. Many companies and consumers are affected due to this serious crisis.
Connections
The connection between the article and Chapter 11 is COGS (goods that are lost, broken, or stolen). Due to huge amount of contaminated chocolates, cookies, candies and milk products, which will all have to be included on the income statement as either a return or as COGS. Many dairy suppliers are now in hold of serious debts as they have to cover large amount of returns and law suits that are taking place. If this crisis continues I believe many more people will be affected and more innocent child will be harmed.
Reflection
In my opinion, I believe China is doing the right decision as to pull off all the dairy products and put it into quality tests. However, I think they should put a more serious charge on the suppliers that added chemical melamine which will affect others and are against their moral. If China treats this crisis sucessfully then it would have a better image and gain trust from consumers again.
1 comment:
I agree with you Carbo! I think there should be charges on the suppliers and those companies that distribute dairy products which contains melamine. I don't think suppliers and companies can just get away with the problems but having many infants and children suffering from this terrible crisis. They should be responsible and take care of those who are affected. Moreover, Canada should check and have quality test on import goods and make sure no Canadian citizens are harm due to this mistake.
like my comment...? LOL
Philip Ngo
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