The authorities in the Changsha, where the company is based,have started an investigation procedure, and AVA Dairy is recalling the affected products, Yuanping said.
According to Changsha's administration for industry and commerce, aflatoxin was found in 31.5 metric tons of infant formula products produced by AVA Dairy between July and December 2011. These productswere distributed to supermarkets in Hunan and Guangdong.
Aflatoxin, a caricogenic compound, is produced by fungus that grows on grain and peanuts. High levels of the toxic compound have been shown to pose cancer risk in animal tests.