Focus on quality

The bad news from Customs can be put to good use in the dairy industry's lobbying for more generous government rescue packages.

Indeed, a 99-percent-plus fall in exports may cripple many industries. But not the dairy industry. After all, only 0.3 percent or so of Chinese dairy products are sold overseas.

In terms of quantity, pardon us for saying this, the Customs statistics meant little more than a negligible scratch.

Yes, the suffering dairy industry needs help. Even in the more tolerant home market, the dairy industry's hard cheese days are far from over. The drastic upsurge in October in dairy imports - over 73 percent over same period last year - illustrates the magnitude of the fear of home-made milk. As that fear lingers, dairy farmers, and innocent producers, if there are, are paying for the guilt of Sanlu and its likes. Which is unfair.

The government should not sit on its hands while an otherwise promising national industry struggles for survival. But it has to make sure the taxpayers' money is spent in justifiable ways.

The government is spending hugely to sustain growth. It will not be a problem to earmark a little more for the dairy industry. But for what purpose?

The real problem is not that some companies may die. So what if we no longer see the Sanlu brand on store shelves? It is actually good to let people see wrong-doers pay for their malfeasance. The authorities have updated national quality standards by incorporating melamine. But are there some other harmful matters being used? Will corner-cutters find new additives to lower cost?

Government financial assistance can only be a waste unless it could help answer such questions. Never count on mothers to buy Sanlu milk for their babies just because a national industry will collapse otherwise.

So instead of rescuing specific firms, the authorities should spend on enhancing the national quality guarantee mechanisms. Given the domestic dairy industry's poor record, the only way to draw customers back is through the message that all products on store shelves are safe. All the rest can be left to the industry players - the increasingly milk-friendly Chinese appetite assures all of them a life of milk and honey, provided they come up with trustworthy goods.

The discovery of melamine traces in China-made Nestle Nesvita Pro-bones milk powder in Saudi Arabia is the latest reminder of the long tail of the Sanlu scandal. There is no cure for that except a dependable quality guarantee system. Now is the time to make it happen.

(China Daily 12/11/2008 page8)