As they waited for their children to recover, anxious parents began compare their symptoms and possible causes. They'd all used fresh milk produced in a nearby village. And their fears have been confirmed. But as Jie Bai finds out, the milk plant that has been running for a year has no production license.

A mass of fodder strewn on the ground. The trough seems far from decent for serving food. This shabby place is where the tainted milk was produced.

The factory, in Mafang Village near Pingliang city, has been in operation for more than a year.

Yang Shaojun, V. Director of Pingliang Commerce Bureau, said, "We inspected the place last year. They were raising cattle then. It wasn't until the outbreak of the milk scandal that we've learned they have been raising cows."

The business license permitted it to raise cattle, but not cows.

It turns out the place was first registered as an economic zone to raise cattle. And the plant was later leased for feeding cows, without an official permit.

What's worse, it's not qualified as a milk production plant.

Zhu Hongwu, President of Animal Husbandry, Veterinary Trade Union, said, "We've been to the place and warned them and issued a notice to stop production because the hygienic conditions are far from qualified. But they just don't listen. And we don't have any compulsory measures."

According to the standard set by the local bureau, a farm should be at least three hundred meters away from residential areas, schools and drinking water. And it should also have professional staff to prevent an outbreak of disease.

But despite operating for more than a year, the farm has met none of these standards, until the outbreak of this painted milk scandal.