Sharechat Logo

Fonterra denies DCD claims after Sri Lankan court imposes temporary ban on products

Monday 19th August 2013

Text too small?

Fonterra Cooperative Group, the world's biggest dairy exporter, faces a 14 day temporary ban on selling products in Sri Lanka, and denies claims its products still contain traces of a nitrate inhibitor that sparked a food scare earlier this year.

Three workers representing Sri Lanka's National Health Services Union have won a temporary injunction to stop the Auckland-based company from selling its products in Sri Lanka, though that doesn't affect food already on shelves, Fonterra said in a statement. The Sri Lankan government isn't involved in the action, it said.

"Our independent testing has found no traces of DCD in any Fonterra branded products in Sri Lanka and no affected whey protein concentrate or products containing it have been sent to the country," said Johan Priem, Fonterra managing director Asia Pacific, Middle East and Africa. "We are confident in the quality and safety of our products in Sri Lanka and we are currently working through our legal options there."

The order was sought amid suspicions the dairy products contain traces of dicyandiamide, the nitrate inhibitor found in some of Fonterra's milk powder last year which led to the voluntary withdrawal of fertilisers using DCD.

The court action comes amid a wider scare about the quality of Fonterra's goods after it discovered bacteria that can cause botulism in three batches of whey protein. The find led to limited import bans being imposed on those affected products in China, Russia, Belarus and Kazakhstan.

The contamination was confined to 38 metric tonnes of whey protein concentrate (WPC80) manufactured at Fonterra's Hautapu plant near Cambridge and first picked up at a plant in Australia. It was used in the manufacture of infant formula, juice and dairy beverages, yoghurt, body building powder, and animal stock food.

The threat to New Zealand's reputation with Chinese consumers has put the government into over-drive to head off the risk, and it is fast-tracking legislation to allow a speedy inquiry so Prime Minister John Key can front up in China to allay those concerns.

The latest scare led to the resignation of NZ Milk Products managing director Gary Romano last week, and Fonterra has also put to unnamed executives on leave while it investigates the cause of the contamination.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fonterra Shareholders' Fund Units
Fonterra normalised earnings meet guidance; drought hurts NZ, ANZ profit falls
Fonterra hikes forecast payout again on eve of earnings result; warns on 1H of 2014 year
Fonterra looks to double Chinese milk production with second farming hub
Fonterra managers failed to immediately escalate WPC80 concerns to CEO, review finds
China repair job under way with next week's Fonterra board visit
Fonterra hikes forecast farmgate price 30 cts on strong international prices
Fonterra Shareholders’ Fund Unit (FSF.NZ)
Fonterra food scare claims scalp of NZ Milk Gary Romano
Fonterra says no signs yet of loss of business, too soon to count cost

IRG See IRG research reports