Sharechat Logo

Vietnam puts Fonterra whey protein imports under scrutiny, no ban in place

Wednesday 7th August 2013 1 Comment

Text too small?

Vietnam has put checks in place to ensure the quality of dairy products using whey protein concentrate made by Fonterra Cooperative Group and has recalled affected products, but hasn't implemented an outright ban on imports from New Zealand's biggest company.

The extent of trade bans on New Zealand products has been unclear with international media fingering China, Russia, Vietnam and Sri Lanka as imposing suspensions. New Zealand Trade Minister Tim Groser told Parliament yesterday only China has suspended imports of certain products, while Russia, Singapore and Vietnam have recalled affected products, and Malaysia, Thailand, Viet Nam, Singapore, Australia, Saudi Arabia, Hong Kong are reviewing the situation.

The Vietnam Trade Office told BusinessDesk in an emailed statement its Food and Safety Department was informed of Fonterra's potential food contamination on Aug. 3 and said the department wants companies to check and report on dairy products containing the whey protein.

"The department has requested all companies which do business on dairy products to check and make reports on importing, trading and using protein concentrate ingredients and products containing whey protein concentrate materials produced by Fonterra - New Zealand," the Vietnam Trade Office said.

"Any raw material, products of lots of warned by the Ministry of Primary Industry of New Zealand must be recalled and reported immediately to the Department of Food and Safety," it said.

New Zealand's MPI has recalled two Nutricia Karicare infant formula products.

Finance Minister Bill English yesterday told Parliament the export value of the two potential tainted products to China was $125 million, or about 0.25 percent of total exports.

"There is some longer-term risk, of course, of effects to our reputation, but, if these circumstances are managed transparently and effectively, we ought to be able to reduce those risks," English said. "The economic impact of the amount of product currently under restrictions is sufficiently small and would not have a discernible impact on our GDP (gross domestic product)."

The food contamination scare was kicked off on Saturday when Fonterra went public on news it had found the bacteria Clostridium, which can cause botulism, in three batches of whey protein concentrate which had affected eight of its customers.

Those concerns have subsided as the contamination appears to have been relatively contained and the New Zealand dollar and units in the Fonterra Shareholders' Fund have recovered from a sell-off on Monday.

Fonterra's GlobalDairyTrade auction showed the average price of dairy products fell 2.4 percent on a trade-weighted basis, though a record 60,587 tonnes was sold for some US$293.7 million.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

On 10 August 2013 at 1:44 pm Henry Hill said:
FCG - Fonterra Co-operative Group - Update On Whey Protein Ingredient Recall Transcript @ http://stks.co/tNyz
Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report