Shares Fall as China-Made Pork Product s are Recalled

by 5m Editor
31 January 2008, at 9:51am

JAPAN - A recall on frozen pork products by Japan Tobacco Inc, the nation's biggest cigarette company, has hit share values. Company shares fell to the lowest in more than 10 months after it recalled products imported from China suspected of being contaminated with pesticides.

Japan's health ministry said eight people had suspected poisoning from eating pork dumplings in the latest food recall by Japanese companies in recent months.

Bloomberg reports that Japan Tobacco shares fell as much as 7.1 percent and traded down 2.9 percent, or 16,000 yen, at 546,000 yen by lunch time on the Tokyo Stock Exchange. It's the lowest figure since 15 March 2008.

Warning signals were also noted from the Maruha Corporation, a unit of Japan's second-largest food producer. It said it was recalling beef products made by the same Chinese firm.

China's reputation for food- processing and manufacturing was damaged last year after recalls of lead-painted toys and poisoned seafood.

"People's anxiety is increasing and we need to prevent the damage from spreading by providing as much information as possible," said Japan's Chief Cabinet Secretary Nobutaka Machimura. "We also need to come up with a plan to prevent such an event from happening again."

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5m Editor