THE Japan-based Meiji Dairy Corporation yesterday began to recall its Meiji FU baby's milk powder in Shanghai.

Zhejiang industrial authorities found the milk powder has quality problems, but the company is standing by its product.

The Zhejiang Province Industrial and Commercial Administrative Bureau said on Monday that the zinc content in the powder is less than the bottom limit of the country's standards, while the iodine content does not tally with that displayed on the package.

The bureau has warned consumers to stop using the milk powder, and ordered a halt to retail sales.

The Meiji company said yesterday it will remove the powder from shelves in Shanghai, and give refunds to dissatisfied customers.

"Consumers can ask for a refund in the market where they bought the powder provided they have a receipt," said an official with the company who only identified herself as Yang.

However, Yang insisted that the milk powder has no quality problems.

"We entered the Chinese market after passing the quality tests of entry-exit inspection authorities, thus the products are strictly in accordance with Chinese quality standards," she said.

The Shanghai Entry-Exit Inspection and Quarantine Bureau could not be reached yesterday for comment.

The Shanghai Food and Drug Administration said it is closely watching the affair and welcomes the company's prompt action.

"We have always monitored the milk-powder market, and the general quality of the powder is satisfactory," said an official with the bureau surnamed Du.

Zinc is essential to babies' physical and mental growth.