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Chinese authorities believe suppliers trying to boost output diluted their milk, adding melamine because its nitrogen content can fool tests measuring protein content.
The Agriculture Ministry, meanwhile, said it is providing subsidies to Chinese dairy farmers badly hit by declining demand for milk. Many farmers have been tossing out raw milk as they are squeezed by feed costs they can't recoup due to waning demand.
The ministry's statement did not give details of the subsidy plan.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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