Fonterra «strongly denies» any legal liability to the yogurt maker in relation to the recall.
Danone said it is claiming at least 200 million euros ($272 million) in compensation from Fonterra Cooperative Group Ltd. after having to recall milk formula products because of a contamination scare.
The maker of Activia Yogurt sent a notice of dispute to Fonterra on Sept. 24 "to give both parties a chance to reach an amicable agreement prior to any litigation," Paris-based Danone said Oct. 3 in an e-mailed statement. The company said it is "determined that it should be fully compensated for damages" and regards food safety as "a non-negotiable prerequisite.
A figure of 200 million euros is part of what Danone is asking to Fonterra as a compensation,the French food maker said in the statement. They represent an estimation of the immediate costs caused by the recall.
Danone issued a recall of milk formula products in eight markets in August after Fonterra said the items might have been affected by a contaminated whey protein ingredient. The scare proved to be a false alarm.
Fonterra said in an Oct. 2 statement that it strongly denies any legal liability to Danone in relation to the recall, adding that discussions between the companies continue.
Source: AgWeb
