Inspection and quarantine authorities in Shanghai found that 42 metric tons of milk powder produced by Fonterra Limited contained an excessive level of nitrite in May, according to General Administration of Quality Supervision, Inspection and Quarantine.

The whole-fat milk powder, produced in New Zealand, to be imported by two companies in Shanghai, was stopped from entering the domestic market and returned by Shanghai's entry-exit inspection and quarantine authority, the administration said.

Entry-exit inspection and quarantine authorities in China stopped 163 batches of substandard foods and cosmetics from entering China in May.