Microblog user "Chafengjun" said he cannot believe New Zealand's dairy product is tainted.

If it is true, the only safe choice is to farm a cow by himself, he joked.

As 60 percent of world dairy manufacturers and suppliers import milk powder from New Zealand, the scare may also weigh on big brands, Song said.

"The milk products exported from Australia, Denmark, France and the Netherlands might benefit a lot," he said.

Meanwhile, the news may cause another panic among consumers, who worried about the price surge of unaffected dairy brands.

China's grocery store chains normally stock milk products on Saturday.

A staff surnamed Li from a Carrefour store in Chaoyang District of Beijing said, "No official notice has been released to remove any dairy products from shelves, but we will keep a watchful eye on the situation."

Two New Zealand fertilizers, Ravensdown Ltd and Ballance Agri-Nutrients, have suspended sales of DCD, which was applied by farmers to improve water quality and promote grass growth.

"DCD has a low toxicity. It is applied as a fertilizer in the United States, Japan and China," said food safety expert Zhu Yi, associate professor of China Agricultural University.

Last year, the US Food and Drug Administration added DCD to a list of substances to test for.

Chinese netizens hope the government could test DCD in milk powder from now on.

"I was so disappointed with the dairy market. Melamine, DCD, etc, I don't know what else will be detected tomorrow," "Moxi Shengli" wrote on Sina Weibo.