China dairy boss delayed reporting quality issues

The trial in the Shijiazhuang Intermediate People's Court was expected to finish Wednesday night, Xinhua said.

Seventeen others have gone on trial over past few days, Xinhua has said. The defendants included people accused of producing melamine and marketing it to milk producers, as well as milk collectors who mixed the chemical into raw milk sold to major dairies. No verdicts have been announced.

But the court cases offer little consolation to some parents who felt the government breached their trust after their children died or were sickened from milk powder certified by authorities as safe.

Some families have said the planned payout by dairies was too low, and their lawyers pledged to continue attempts to sue for more compensation.

The 22 Chinese dairy companies found to have sold tainted products would contribute to the 1.1 billion yuan ($160 million) compensation fund. Children who suffered kidney stones would get 2,000 yuan ($290) while sicker children would be paid 30,000 yuan ($4,380), the paper said. The one-time cash payments total 900 million yuan ($131 million), while another 200 million yuan ($29 million) will go to a fund set up to cover bills for lingering health problems.

The fund would pay medical costs related to tainted milk until victims turn 18, China Daily said Wednesday.

Sanlu, which filed for bankruptcy and faces 1.1 billion yuan ($160 million) in debt, has leased its plants to a subsidiary of Beijing Sanyuan Foods Co. Ltd., Xinhua reported. Production will start soon at the plants, which have been shut down since Sept. 12, shortly after news of the baby formula contamination broke.

Sanyuan emerged from the scandal with its reputation largely intact because its products were never found to contain melamine.

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