December 24, 2008

China Mengniu Dairy Co Ltd said it expects to incur a loss of 900 mln yuan this year as sales were affected by the melamine contamination scandal in China. It said the group write off certain inventories and incurred costs for disposal of raw milk following the contamination incident. Mengniu said the anticipated 2008 loss is based on preliminary figures. A milk-products contamination scandal broke out in China in mid-September, involving several dairy firms in the country. Mengniu shares opened down 6 pct.

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