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March 14, 2014

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Fonterra accepts all charges in scandal

New Zealand dairy giant Fonterra yesterday said it accepted all charges by the Ministry for Primary Industries over a botulism contamination scare of whey protein concentrate last year.

Earlier in the day, the New Zealand government filed charges against the company for processing dairy product not in accordance with risk control standard; exporting dairy product that failed to meet relevant animal product standards; and failing to timely inform the government of risk and quality concerns.

The charges “are consistent with the findings of our operational review, and the independent board inquiry,” Fonterra’s managing director Maury Leyland said in a statement.

Fonterra will face fines of up to NZ$500,000 (US$426,000).

In September, the botulism scare sparked a global recall of infant formula after the company processed whey protein concentrate in dirty pipes in one of its factories in the North Island’s Waikato district.

But it turned out to be a false alarm as the company later confirmed the whey protein concentrate involved in the scare contained another bacteria that didn’t present a danger to health.




 

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