GUILTY: Xuzhou Anying Biologic Technology Development Co

This is the company that manufactured the tainted wheat glutin. There is also the possability the tainted product ended up in human food in China.

What I’d like to know? This has cost Menu Foods over $40 million just for the recall itself, not to mention the on-going sales fallout from these products being off the shelf, and the negative image the company will bear for a long time.

Menu Foods and Purina plan on suing this company, but realistically. How do you sue a company for $40+ million dollars when their supposed entire portfolio value is only $2.5 - 5 million per year? This company supposedly only employs 50-100 people too! It’s kind of scary such a tiny company can destroy much of North America’s commercial supply of wet pet food.

http://www.alibaba.com/company/10926883.html

<<edit to add>>
I guess ISO9001 cert isn’t as good as it used to be…

What’s going to suffer greatly are the images of high-end pet food suppliers like Iams and Eukanuba. Being lumped in the same category as the generic supermarket brands is going to be a pretty debilitating blow to these companies’ brand values.

If you mean “how will you recover $40 million,” the answer is pretty obvious: you won’t. This sort of thing happens all the time, I think. I don’t do civil law, but probably any civil lawyer will tell you that whether you’re in the right is not nearly as important as whether the person in the wrong has any collectable assets.

Well, in civil law they alleged that Kevin Mitnick owed several high tech companies over a couple million dollars and he ended up paying a couple thousand (since he had no money at all and his legal defense fund was the only thing providing money to attempt to get his release from jail or his first ever arraignment after four years in jail). Also, when the RIAA sues 9 year old kids for $400,000 for p2p sharing they only collect enough to take the kids computer away and a bit extra ($4,000).

It’s all in the final agreement details when the case is over.

The real losers in this (aside from those individuals who lost a beloved pet obviously) are American pet food companies as a whole. Consumers now no longer trust blindly that the food they buy for their pets is safe, and a small but growing segment of people are now either buying natural pet foods or even making their own. While sales lost to this segment won’t add up to a whole lot, most of the money in pet food is made off the premium brands, catering to people’s desire to pamper their pet. These same premium brands are the ones that had the problems, and then to have the media going on about store brands and premium brands having so little difference, that’s going to effect the bottom line of these companies in a big way.

I’ve read that most pet owners, even the one’s whose pet died, won’t be able to individually sue Menu Foods for more than the documented value of their pet and the medical care it received, and that’s if they can prove the connection. I wonder if a couple of class action suits would be enough to put Menu Foods out of business? At the very least, this whole thing should result in tighter regulations on the manufacturing of pet food in the future.

You know who is more guilty? Menu Foods and The FDA. Interesting article on the subject here

Nearly one month passed from the date Menu got its first report of a death to the date it issued the recall. During that time, no veterinarians were warned to be on the lookout for unusual numbers of kidney failure in their patients. No pet owners were warned to watch their pets for its symptoms. And thousands and thousands of pet owners kept buying those foods and giving them to their dogs and cats.

At that point, Menu had seen a 35 percent death rate in their test-lab cats, with another 45 percent suffering kidney damage. The overall death rate for animals in Menu’s tests was around 20 percent. How many pets, eating those recalled foods, had died, become ill or suffered kidney damage in the time leading up to the recall and in the days since? The answer to that hasn’t changed since the day the recall was issued: We don’t know.

That’s some pretty bad negligence on their part imo.

And this is the worst:

For some, the story ended there. But for others, there was one more horrifying chapter. Because kidney failure causes nausea, it’s often hard to get recovering pets to eat. So a lot of these owners got down on their hands and knees and coaxed and begged and eventually hand-fed their pets the very same food that had made them sick. Those animals ended up right back in the hospital and died, because their loving owners didn’t know that the food was tainted.

The article points out some of the really bad faults in the system. Menu Foods didn’t notify quickly, and then understated the problem, and there is no organisation analogous with the CDC for animals, so many veterinarians didn’t know about it until it was too late.