Arla, one of the world's largest dairy produce manufacturers, has temporarily stopped production at its factory in Hohhot in China after three samples from its factory tested positive for melamine in milk powder.

Arla CEO Peder Tuborgh, who is currently in China, says the foodstuff scandal in the country is a national catastrophe.

Tragic
"It's terrible and deeply tragic," Peder Tuborgh tells a news conference in Hohhot, where Arla runs a milk powder factory with its Chinese partner Mengniu - which is China's largest dairy producer.

Production was stopped on Wednesday morning after Mengniu management held crisis management meetings overnight in a situation in which consumers risk losing all confidence in the dairy sector.

Many ill, three dead
China's health minister Chen Zhu is reported by the BBC to have now announced that in all, 6,244 babies have now falen ill in China, with 158 children having been diagnosed with acute renal failure after drinking formula milk made from contaminated powder.

He said twenty-two brands of powder have been been found to contain the toxic industrial chemical melamine, which was apparently added to make the milk appear higher in protein.

Chen said a third baby has now died as a result of the poisoning.