Melamine scandal cuts Arla's China sales in half

Scandinavian dairy firm Arla Foods has warned that it will be more than a year before its sales rebound in China following the melamine scandal, the Financial Times reported. "We need to use all effort possible to regain the confidence of the consumer," said Arla CEO Peder Tuborgh. He noted that the company’s sales volumes in China were half what they were a few months ago. Arla, which is perhaps best known as the owner of Lurpak butter and Castello cheese, has a 49% stake in a milk powder joint venture with local dairy firm China Mengniu. The joint venture was one of many companies that recalled products after discovering some were contaminated with the industrial chemical melamine, which was used to artificially boost milk protein levels. Arla previously did not test for melamine. It now tests ingredients for the chemical at both ends of the production process.