---
title: "Over 100 Domestic Infant Formula Companies Complete System Inspections; These Few Are the Most Intolerable!"
description: "On June 15, the State Administration for Market Regulation reported that six infant formula companies had deficiencies in implementing food safety management systems, though no product quality issues were found. Statistics show that this year, regulators have reported on 21 infant formula companies, completing thorough inspections of all over 100 domestic infant formula enterprises."
author: "精华食报"
publisher: "New Distribution"
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published: "2018-06-21"
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# Over 100 Domestic Infant Formula Companies Complete System Inspections; These Few Are the Most Intolerable!

> On June 15, the State Administration for Market Regulation reported that six infant formula companies had deficiencies in implementing food safety management systems, though no product quality issues were found. Statistics show that this year, regulators have reported on 21 infant formula companies, completing thorough inspections of all over 100 domestic infant formula enterprises.

On June 15, the State Administration for Market Regulation reported that six infant formula companies had deficiencies in implementing food safety management systems. The report indicated that there were no product quality issues.
According to statistics from Hushu Youli, this year, national regulators have reported on 21 infant formula companies' inspection results. With this, all over 100 domestic infant formula companies have been thoroughly dissected.

1. Six Companies Reported, No Quality Issues
On June 15, the State Administration for Market Regulation, after its establishment, issued a notice on the food safety production standard system inspections of infant formula companies, including Heilongjiang Beingmate, Tianjin Yili, Tangshan Sanyuan, Hebei Sanyuan, Synutra Nutrition, and Dumex. Hushu Youli found that, as usual, there were no product quality issues, but mainly deficiencies in the implementation of food safety management systems.
Compared to previous reports where some companies had dozens of deficiencies, these six companies are all large enterprises with few problems, making this the report with the fewest overall issues.

2. Over 100 Domestic Infant Formula Companies Complete System Inspections
The food safety production standard system inspection is a comprehensive physical examination of a company's production operation standards. The China Food and Drug Administration (CFDA) began conducting such inspections on infant formula companies in 2014. By the end of 2017, 89 companies had been inspected.
To ensure the quality and safety of infant formula and urge companies to strictly implement their main responsibility for food safety, the former CFDA adhered to a regulatory approach of problem-oriented and prevention-first, formulating a three-year full coverage inspection plan for 106 domestic infant formula production enterprises.
From 2014 to the end of 2017, the CFDA conducted 99 system inspections on 89 infant formula production enterprises. As a result of issues found during inspections, 19 companies were ordered to suspend production for rectification, 10 were investigated and dealt with, 2 had their production licenses revoked, and 4 voluntarily canceled their production licenses.
Earlier reports indicated that in the first half of 2018, the CFDA would complete system inspections of all 106 domestic infant formula production enterprises.
Hushu Youli noted that on January 19, February 9, April 16, and today (June 15), regulators reported on a total of 21 companies. Adding the previous 89, a total of 110 companies have undergone thorough system inspections by national regulators.
Based on this, it can be inferred that essentially all domestic infant formula enterprises have now completed system inspections.

3. Microscopic Dissection, Not Missing Any Small Issue
Why is it called a dissection-style inspection? Through the notices issued by national regulators, we can see that this inspection is detailed to an extent unimaginable to ordinary people. For example, the inspection of Inner Mongolia Jinhai Yili Dairy Co., Ltd. reported on January 19 this year showed only two issues: some raw materials were unpacked, weighed, and sealed in a general work area (raw material temporary storage area), and a batch of base powder had a paper record with a filling error. The Feihe Gannan factory reported on April 16 had only one issue: the on-site provision of maintenance records for air conditioning units and other equipment was missing, making it the factory with the fewest issues.
It is understood that all companies that underwent system inspections received rectification notices from the CFDA, and those with serious deficiencies in their quality management systems were investigated.
Regarding system inspections, media reports previously quoted Zhang Baojie, Director of Central Government Affairs at Wyeth Nutrition (China) Co., Ltd., as saying: Wyeth has infant formula production plants in the Netherlands, Switzerland, and other countries and regions, all of which have been inspected by EU food safety authorities, but the strictness of those inspections is not comparable to the system inspection conducted by Chinese regulators on Wyeth's Suzhou plant. Compared to the European regulatory environment, Chinese government regulation is stricter and more meticulous, using a microscope to find quality and safety management defects. Such nearly stringent regulation makes companies truly realize what the strictest supervision means.
At the First China Dairy Quality Annual Meeting held on January 18 this year, a relevant official from the Food Safety Supervision Division of the CFDA stated that the hardware conditions of mainstream domestic infant formula production enterprises, such as production facilities and equipment, have been significantly improved and basically reached world-class levels. However, the results of system inspections and unannounced inspections show that management still has deficiencies, and quality awareness needs to be further strengthened. For example, about 40% of inspected companies did not establish a complete employee training system as required. The official emphasized that in the face of increasingly complete regulations and updated standards, dairy companies should proactively strengthen training for management personnel to better implement their main responsibilities.

4. Some Companies Have Serious Issues That Cannot Be Tolerated
It is understood that among the inspected companies, small and medium-sized enterprises have more problems compared to well-known large enterprises, and some have quite serious issues.
For example, Heshui Guxiang Dairy, Yabeisi (Shenzhen) Dairy, and Yingbo Huawei Dairy were found to have serious violations such as forging or destroying materials and deceiving inspection teams, and were subsequently investigated. These companies' shortcomings in production equipment, technical capabilities, management level, and management personnel quality were fully exposed during the inspections.
More seriously intolerable companies include Shaanxi Huanenbao and Xinjiang Ximu Dairy.
In September 2017, Huanenbao was reported to have 30 problems, including suspected deception of consumers. The notice at that time showed that the quality safety authorized person was on a business trip but could simultaneously appear at the unit and sign; a batch of Zhibao toddler formula goat milk powder product packaging claimed the milk source was from the Netherlands, but batch production records showed that the actual raw material used for this batch, whole milk goat milk powder, was partially from Xi'an, Shaanxi.
Also, Ximu Dairy Co., Ltd., controlled by listed company Western Animal Husbandry, was reported by national regulators in November 2017 to have 12 major problems and deficiencies, the most intolerable being that three batches of Xiyue infant formula used expired raw materials in processing.
Additionally, the General Administration pointed out that Ximu Dairy failed to provide academic qualification certificates, training assessments, and other materials for the quality safety authorized person and production management personnel; and during production, refined corn oil was used instead of refined grape seed oil as specified in the formula.
On December 15 last year, Western Animal Husbandry issued an announcement that, in response to Ximu Dairy's actions, the Shihezi Food and Drug Administration imposed an administrative penalty of nearly 16.31 million yuan; subsequently, the chairman of Western Animal Husbandry resigned.

5. Regulators Will Increase Unannounced Inspections
A report in China Pharmaceutical News in February this year showed that a relevant official from the CFDA stated that after the full coverage system inspections are completed in the first half of 2018, regulators will increase the intensity of unannounced inspections, focusing on companies that failed supervision and inspection.
Strict system inspections have helped improve companies' quality and safety management capabilities and have also promoted the improvement of infant formula quality and safety. The pass rate for infant formula sampling inspections in China has been rising for three consecutive years, reaching over 99.5% in 2017, leading the entire food industry. Sampling inspection is a post-event management tool, while system inspections and unannounced inspections are part of pre-event management, which is more conducive to eliminating food safety risks in the bud. System inspection is not fault-finding but a concrete measure by regulators to help companies improve management. It is expected that system inspections will become a routine part of regulatory management in the future, said a person in charge of an infant formula enterprise.
Source: Hushu Youli
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