File photo of Fonterra milk powder on sale in China. [Photo: baidu]

Shanghai authorities arrested 19 people for selling about 300 tons of expired New Zealand brand Fonterra milk powder, according to Shanghai Municipal Food and Drug Administration's website.

The suspects were allegedly managing a company that was packaging expired products from the New Zealand dairy company into smaller packages for resale below market prices in China.

Local police said among the 19 suspects, 8 of them have been charged, 3 are detained, and another 8 are free on bail.

Fonterra is one of the most popular brands in China.

In March, Shanghai authorities found a food company in Minhang District packaging the expired products of Fonterra.

Upon further investigation, one of the suspects surnamed Liu allegedly sold 276 tons of the expired dairy products to another company to cut his loss.

The company allegedly then sold 166.8 tons to other distributors in Shanghai, Jiangsu, Henan and Qinghai provinces, who sold them wholesale or via e-commerce platforms.

More than 100 tons of expired dairy products have been seized. The authorities said the involved online stores have also been shut down.