[Marxism] China milk scandal

[Louis Proyect]

http://www.marxist.com/20-percent-china-milk-companies-melamine-scandal.htm
China: 20 percent of China milk companies involved in melamine scandal 
  	By Fred Weston
Wednesday, 01 October 2008

The scandal over contaminated milk in China continues to spread. From 
two now the number of children who have died has become at least four, 
and some reports say six. Once the scandal erupted the government was 
forced to step in and ordered a nationwide investigation into all baby 
milk powders. The official investigation has found that 20% of China's 
dairy companies are involved. As we reported previously, the Sanlu Group 
has been distributing milk containing melamine, a chemical that can make 
the protein level in dairy products appear higher than it is.
2008 Chinese baby milk scandal (photo by Marc van der Chijs)
Stripped shelves in a supermarket in China
as a result of the contamination

So far two children have died and 50,000 have fallen ill, some 
developing kidney problems. The head of the Sanlu company was sacked, 
but how many more heads will have to roll in the coming period?

In the initial investigation 109 dairy companies were checked, of which 
22 were found to be selling milk containing melamine. Even Yili, which 
supplied milk for the Beijing Olympic Games, has been involved in the 
scandal, and many more.

According to Chinanews.com, Sanlu's chairperson "bore very large 
responsibility" for what has happened. But how can all this be blamed on 
one person? Since March parents had been complaining to the company 
about their babies' discoloured urine. In fact, it has been revealed 
that Sanlu was aware of the melamine problem back in December of last 
year. So why was nothing done then? Some babies had already been 
admitted to hospital in March, so the managers of the company cannot 
claim ignorance.

As we reported in our previous article, the Sanlu group has been trying 
to unload responsibility to smaller farmers who supply the milk. 
According to the Xinhua news agency several of these have been arrested, 
one of whom was producing 3 tons of milk a day, contaminated with 
melamine. On 17 September 22 people were arrested, suspected of using 
the toxic chemical.

If an initial investigation found that 22 companies have been involved 
  clearly working with many smaller dealers   in this practice of adding 
the toxic chemical to milk powder, then the problem is not just one 
company and not just one top manager. It is also the case that it is not 
just the dairy industry that has been affected by such scandals in the 
recent period. Already back in 2004, at least 13 babies died after 
drinking adulterated milk powder. Other food companies have also been 
involved.

The official Xinhua news agency has revealed that among those arrested 
some have openly admitted to using melamine. One of these explained that 
in the past his milk was rejected by the Sanlu company because of its 
low protein content. He then discovered that if he added melamine this 
would up the protein levels in the tests and thus be accepted by Sanlu.

As we have seen, attempts have been made to divert attention away from 
the big companies and blame the small farmers, who supply the milk. The 
problem, however, is that the small farmers depend on middlemen. These 
middlemen push down the price the small farmer gets for his produce. 
Demand for milk products has been growing fast. In fact over the past 
few years the industry as a whole has been growing by around 30% a year.

In order to increase production the small farmers have been pushed into 
watering down the milk. But that lowers the protein levels, thus making 
the milk unacceptable to the large companies. That's where the melamine 
comes in!

Now, as a result of this scandal China's dairy industry is in serious 
crisis, as more and more countries impose bans on importing Chinese 
dairy products. The Chinese government is now desperately trying to 
restore the reputation of their dairy industry, and is taking measures 
to seriously review the milk collection system.

This whole scandal reveals the cynicism of these people. When parents 
were complaining about their children's symptoms they didn't get much 
sympathy from the officials. Once the scandal broke out, provoking the 
anger of ordinary working people, they stepped in. And now that their 
profits are being seriously affected they are stepping up their 
measures. The milk industry in China is calculated to be worth about 
$20bn, so the people at the top must be very worried.

What this scandal reflects is the greed for profit that has spread 
throughout the Chinese economy. Whether state owned or private, Chinese 
companies are now out for one thing, enrichment for the few! And the 
authorities turn a blind eye... until a scandal like this one erupts, 
with babies dieing! Then they have to step in and attempt to 
re-establish some kind of order. But they punish the individual in order 
to save the system as a whole. We have seen this many times. They are 
not going to remove the greedy quest for profit. Market economics is 
capitalism. Capitalism does not look at the needs of people. Its God is 
profit.

What is required is not merely the sacking of this or that individual 
manager. It is the system as a whole that must go. The Chinese workers 
have paid a heavy price for the "capitalist road". They are learning 
from their everyday experience what capitalism stands for. At some point 
they will draw the conclusion that the whole system must go. That is 
what terrifies the leaders of the so-called Communist Party!