China saw a dramatic slide in export of dairy products and a sharp increase of imports in October, as consumer confidence was dampened at home and abroad by September's tainted formula scandal and the ensuing restriction of the nation's dairy exports by many countries and regions.

The General Administration of Customs said Thursday that the Chinese mainland sold 1,036 tons of dairy products in October, a decline of 91.8 percent from the same month of last year, or 94.7 percent from the previous month.

The exports were valued at US$2.13 million, down 91.7 percent year-on-year, or 96.5 percent month-on-month.

The total included just 48 tons of formula powder, down 99.2 percent year-on-year or 99.7 percent month-on-month. Usually, milk powder makes up more than 50 percent of China's total dairy product exports.

In October, the nation imported 33,000 tons of dairy products, up 73.2 percent on the same month of last year, or 13.7 percent on the previous month. The arrivals were valued at US$71.78 million, up 22.2 percent year-on-year, or 8.7 percent month-on-month.

In the first 10 months of this year, China exported 110,000 tons of dairy products for US$280 million, up 2.4 percent and 50.4 percent, respectively.

Imports were 271,000 tons valued at US$690 million, up 14.6 percent and 23.4 percent, respectively.

Major markets for exports were Hong Kong, ASEAN members and Taiwan, while major sources for imports were the United States, European Union and New Zealand.

The formula scandal broke out in the northern China province of Hebei in mid September, when Sanlu Group, a leading Chinese dairy producer, admitted that it had found some of its baby milk powder products were contaminated with industrial chemical melamine, which was used to fool tests measuring protein content with its high nitrogen content.

Contaminated baby formula killed at least three infants and left more than 53,000 with urinary tract problems, including kidney stones.

(Xinhua News Agency December 18, 2008)