They are unsure of public reaction to China-made products as ban is lifted in phases
By
Debbie Yong
and
Tessa Wong
-- PHOTO: ASSOCIATED PRESS
ONE quick-to-act food importer did not waste time after a melamine scare led to a blanket ban here on the sale of all China-made milk products.
The Sept 19 ban is being lifted progressively over three weeks, starting last Tuesday, with tests being carried out in phases.
To cut its losses, the firm sent two tonnes of its recalled China- made but melamine-free crackers to South-east Asian countries without such a blanket ban.
'Why would you want to throw away goods that are perfectly okay?' said a spokesman, who did not want his firm to be identified.
Two other China-made products it imported had tested positive for melamine and all six tonnes were destroyed last Friday, he added.
The Agri-Food and Veterinary Authority (AVA) announced last Tuesday that China-made milk products that passed final tests will gradually be allowed back on shelves here. The ban will be lifted in three phases, according to a product's risk of being tainted with melamine based on its milk content level.
Fresh milk imports from China are still banned, while products made in China using milk from other countries will be released for sale only when importers submit proof of the sources of milk ingredients.
News of the lifting of the blanket ban had brought relief to importers who pulled stocks off shelves though theirs were not among the 13 products proven to be tainted.
Said the director of one firm which had 10 untainted biscuit products: 'We're an innocent party but we understand public concern and the need for AVA's actions.'
Her company spent about $3,000 conducting tests to prove its products were clean. Operating costs increased by 30 to 50 per cent for the month of September due to the recalls. The firm's products have a shelf-life of up to two years, so losses will be minimal once sales resume.
But for some, the lifting of the ban came too late.
Those faced with expiring product dates and uncertainty over when the ban would be lifted chose to destroy recalled milk products, even if they were not proven to be tainted. For instance, Meng Chong Foodstuffs, the importer for Monmilk, spent $420,000 incinerating 250 tonnes of the milk.
Some importers secured refunds from manufacturers.
Yamakawa Trading, the importer of contaminated Yili milk, received a full compensation of $300,000 from the China milk producer last Friday.Yamakawa's director Apple Ong is unsure if she will continue importing Yili products.
Other importers are similarly worried about the blow to consumer confidence in China-made milk products. 'What we will do depends on the reaction when banned items begin selling again,' said Mr Alfred Choo, marketing manager of Hup Seng, which used to bring in Mentos yogurt chewy dragees.
Yamakawa's Ms Ong added: 'It might take months or a year for manufacturers to get documentation for future imports to Singapore, and we'll have to then step up marketing and rebranding.'
