BEIJING - THE milk industry in China has made a stunning recovery just three months after its tainted products sent the country, and the world, into a massive panic.

Official reports said last month's figures showed that sales of China-made milk were back up to 80 per cent of the pre-scandal level, but did not provide actual sales figures.

Experts had previously predicted that it would take at least two years for the industry to recover.

But with milk becoming an increasingly regular feature of the Chinese diet and prices of foreign brands too prohibitive for the average consumer in the long run, many people gradually returned to domestic brands in the last two months.

'The government has come out strongly to fix the problem. I believe the measures taken are quite effective. My faith in domestic milk has gradually returned,' said housewife Liu Chen, 37, who started buying Yili milk in October for her six-year-old daughter.

The turnaround is remarkable, considering that domestic milk sales had hit rock bottom after Chinese dairy products were pulled off supermarket shelves following the tainted milk scandal in mid-September last year.

Six babies are known to have died and as many as 294,000 fell sick in China after drinking melamine-tainted milk. Revelations that the plastic-making chemical had been added to milk produced by 22 Chinese dairy companies had frightened off many people then. The products affected were recalled.

The official China News website quoted an unnamed industry insider as saying that the 'speedy recovery is beyond anyone's expectations'.

The National Food Quality Supervision and Inspection Centre also reported on its website that most consumers have regained their 'passion' for local milk and dairy producers are confident of the industry in the new year.

Some supermarkets said they are overwhelmed by the demand. 'I'm struggling to get more milk to meet the demand,' said sales manager Miao Yanlei of the Vanguard Supermarket chain.

The dairy companies have been on a public relations drive to restore public confidence. Inner Mongolia dairy giant Yili went on an advertising blitz called the 'Milk You Can Trust Campaign'. Another major producer, Mengniu, told The Straits Times it has strengthened checks on milk sources and broadcast its production process online.

The companies also sent an SMS to more than 500 million mobile phone subscribers on New Year's Day, asking for forgiveness and pledging to not repeat their mistakes.

But a key factor behind the recovery is that milk is now a prominent part of the Chinese breakfast diet - thanks to a government campaign from 2001 encouraging consumption. After the Sars outbreak in 2003, dairy products were also touted by the government as containing vitamins and minerals that are good for the immune system.

'I drink milk every day and can't do without it,' said Ms Liu. 'I switched to porridge and soyabean milk during the crisis, but I couldn't get used to them.'

But consumer confidence has not been entirely restored. A survey here recently showed that trust in food in China ranks second from bottom. In bottom place was the real estate sector.

'They will still add stuff to the milk. Otherwise, how are the dairy companies going to make money?' asked restaurant owner Li Na, 35. Still, she has resumed buying China-made milk for her eight-year-old son. 'I just make sure my son doesn't drink as much as before.'

shpeh@sph.com.sg

Additional reporting by Carol Feng