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Mengniu expects losses

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Mengniu Dairy Co expects to post a loss of about 900 million yuan (US$131 million) this year due to the impact of the melamine scandal on China's milk industry.

The scandal cut sales, forced the firm to write off inventories and increased raw-milk disposal and sales-promotional costs, Mengniu said in a statement to Hong Kong's stock exchange yesterday.

(Shanghai Daily December 24, 2008)

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