Chinese Ministry of Agriculture (MOA) said that 29 provincial areas nationwide had set up special working groups by Wednesday to regulate the dairy product market in response to the recent tainted baby formula scandal.

Local governments also promised subsidies for dairy farmers, in a bid to reduce their cost of feeding cows. North China's Hebei Province earmarked 316 million yuan (US$46.4 million) as subsidies on the basis of 200 yuan for each cow, said the ministry on its website.

Central China's Shanxi Province would grant a subsidy between 10 and 18 yuan per day for each cow to dairy farmers in major milk producing cities and counties. Liaoning Province in northeast allocated 108 million yuan as subsidies for 240,000 cows, according to the MOA.

The General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) also announced Wednesday that a quality check of milk, yoghurt and other liquid dairy products produced after September 14 had shown no signs of toxic chemical melamine.

The Sanlu Group, a leading Chinese dairy producer based in northern Hebei Province, admitted on September 12 that it had found some of its baby milk powder products were contaminated with melamine.

"The quality sample checked this time covered major brands including Mengniu, Yili, Guangming and Sanyuan," said the GAQSIQ.

The quality watchdog would continue conducting dairy product quality inspections and make public the results in a timely manner.

(Xinhua News Agency September 25, 2008)