Milk fibers where created by Germans, to aid in wool shortages caused by sheep shortages, during the first World War. They have for the most part given up on this tecnology.
Their still are supporters. China is now the biggest supplier of milk fibers. This article suggested sending China's milk, to use in milk fiber companies. I have no reason or proff that contaminated milk will or has been used.
Some companies that use milk fibers include:
Comforter made with milk On web site: "Outer Layer Consists of 100% Cotton, Inner core consists of 20% Milk Protein and 80% Fibers"
Paradice Fibers On their web site: "Yes thats right, it's made from Milk. 80% Milk 20% cotton"
I have no reason to believe that any milk fiber companies are deliberately useing china's contaminated milk.