Vietnam farmers sue for damages from melamine scare

HANOI (Reuters) - Vietnamese dairy farmers have filed a civil suit seeking compensation from the health ministry for erroneously saying the company they supplied sold melamine-laced products.

Nearly 100 farmers in the northern province of Vinh Phuc said they were unable to sell their milk for three months after the health ministry announced that Hanoi Milk Joint Stock Co.'s products were tainted by the industrial chemical, the Vietnam News reported on Wednesday.

The ministry recently said the company's products were in fact melamine-free, but the farmers said their situation had not improved. The newspaper did not say how much compensation they were seeking.

Hanoi Milk, Vietnam's third largest dairy product company, has reported that its revenue fell 70 percent in September due to the melamine scare.

Melamine, an industrial compound used in making plastic chairs, counter tops, plates, flame retardants and even concrete, has been added to food to cheat nutrition tests due to its high nitrogen content. It can be harmful to health.

In China, where the scandal emerged, at least six children have died and more than 290,000 were made ill by milk contaminated with melamine. There have been no reported cases of melamine-related illness in Vietnam.