Fonterra CEO in Beijing to apologize for dairy scare
Print Edition
Fonterra, the world’s largest dairy exporter, yesterday apologized for a food-safety scare triggered by the discovery of bacteria that can cause botulism in whey protein concentrate imported by China and five other countries.
Botulism, which can be fatal, affects the nervous and respiratory systems.
Fonterra CEO Theo Spierings told reporters in Beijing: “We regret the distress and anxiety which this issue could have caused.”
“We totally understand there is concern by parents and other consumers around the world. Parents have the right to know that infant nutrition and other dairy products are harmless and safe.”
Spierings said the world’s biggest dairy exporter was not facing a ban on its products in China, only restrictions on whey protein concentrate.
He said he expected the curbs would be lifted early this week, as soon as Fonterra provides Chinese regulators with a detailed explanation of what went wrong. The majority of the affected products had already been contained, he said. “In 48 hours we will have complete control over products containing this ingredient,” he said. He said the company would be working closely with Chinese authorities.
A total of 38 tons of whey protein concentrate was contaminated and sold to eight producers and then exported to six countries, the company said.
Chinese authorities have suspended imports of Fonterra-produced whey powder and milk-based powder, and increased inspection and supervision at the border for New Zealand dairy products, New Zealand’s Ministry for Primary Industries said yesterday.
On Sunday, Trade Minister Tom Groser said China had stopped all imports of New Zealand milk powders but the ministry confirmed yesterday that China had not closed its doors to all New Zealand dairy products.
“China has not closed the market to all New Zealand dairy products, it has been quite specific about the range of Fonterra products which it has temporarily suspended,” The Associated Press quoted Scott Gallacher, acting director-general of the Ministry for Primary Industries, as saying.
“The Chinese authorities still have a number of questions, which we are wanting to work with them on to respond to.”
Among the eight customers affected by the contaminated whey protein concentrate, Spierings said products from Wahaha, Coca-Cola Co and Auckland-based Vitaco Health Group were safe as the ultra-high temperature manufacturing processes they used would kill the bacteria. He also said that one affected company had refused to have its name revealed but it was addressing the issue.
China’s quality watchdog had urged infant formula and beverage producers including Dumex, Coca-Cola and Wahaha to stop sales of potentially contaminated products and they have recalled outstanding product and sealed unsold products made with the contaminated raw material.
Fonterra discovered in March that some whey protein concentrate produced and sold to customers in May 2012 was contaminated. Tests revealed the harmful bacteria strain at the end of July.
Meanwhile, New Zealand Prime Minister John Key said the dairy giant would be the target of an investigation. He questioned the delay in revealing the contamination, Radio New Zealand reported yesterday.
Hangzhou-based Wahaha said it had purchased 14.475 tons of whey protein from Fonterra and it was used by five of its subsidiaries in 11 kinds of products.
Dumex Baby Food Co, which imported 208.55 tons of raw milk powder, is in the process of withdrawing products.
China is the largest market for New Zealand’s milk powder, accounting for 23 percent of its milk powder exports last year.
“One possible sequel of this incident is that China’s consumers will seek alternative sources of supply and Switzerland and the Netherlands may benefit from the switched demand,” Australia and New Zealand banking group ANZ said.
UBS Securities said: “Chinese dairy companies are gradually catching up with multinational companies in terms of quality and watchdog’s tighter scrutiny in the industry could also give leading local companies more opportunities to win consumers.”
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