China’s biggest milk producer by revenue, Inner Mongolia Yili Industrial Group Co (600887.SS), has recalled baby formula tainted with “unusual” levels of mercury in the latest safety scare for the country’s dairy sector. The recall, during China’s “Food Safety Week” and a day after the cabinet introduced fresh measures to tighten supervision of the sector, sent Yili shares down by their 10 percent daily limit. It shows how Yili and competitors like second-ranked China Mengniu Dairy Co Ltd (2319.HK) are struggling to get to grips with food safety four years after a major scandal where tainted milk powder was blamed for the deaths of at least six children. . .