The latest tests on Chinese liquid dairy products found no traces of melamine, the country's top quality control agency said on Thursday.

It was the eighth investigation on the industrial chemical following the tainted baby formula scandal that killed at least three infants and sickened more than 50,000 others, according to the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

The latest tests covered 855 batches of liquid milk, including yogurt, from 77 brands in 22 major and four mid-size cities, the agency said.

At present, 3,681 batches of liquid dairy products from 126 brands produced after Sept. 14 were tested and none contained melamine, it added.

Melamine, often used in the manufacturing of plastics, was added to sub-standard or diluted milk to make the protein levels appear higher.

China on Wednesday set limits on melamine content in dairy products. The limits were a maximum of 1 mg of melamine per kg of infant formula and a maximum 2.5 mg per kg for liquid milk, milk powder and food products containing at least 15 percent milk.

The agency had sent more than 5,000 inspectors to carry out round-the-clock scrutiny at dairy factories in effort to ensure quality and restore consumer confidence.

The Ministry of Finance on Thursday said it allocated 300 million yuan (43.9 million U.S. dollars) to dairy farmers in five major dairy producing provinces.

Farmers suffered losses as they disposed of raw milk because of a slump in dairy consumption following the scandal.

(Xinhua News Agency October 10, 2008)