The Chinese dairy industry, still reeling from the melamine scandal that broke last September, is seeking a government bailout.

“The whole industry is facing huge challenges,” says Wang Weimin, secretary-general of the Dairy Industry Development Association of West China.

Weimin confirmed to China Daily newspaper that the dairy industry has petitioned for government help.

Wang Dingmian, a director of the Dairy Association of China, told China Daily the amount of overstocked milk powder across the country has reached at least 250,000 tons,  compared to “near zero” before the melamine scandal broke.

The global economic crisis has not helped, either. The crisis has reduced demand for dairy products in many nations across the world.

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Source: ChinaDaily