A ban on Fonterra products by Russia, Kazakhstan and Belarus following a contamination scare could cost the company tens of millions of dollars.
The dairy giant publicly announced on August 3 a product it produces for infant formula, beverages and animal feed – a concentrated whey product – was potentially contaminated with a bacteria linked to botulism.
Trade Minister Tim Groser’s office today confirmed the three former Soviet states had banned all Fonterra dairy products, despite none of the potentially affected product being shipped there.
Dairy exports in the three countries are worth $133 million a year.
Primary Industries Minister Nathan Guy said officials were working to rectify the ban.
«We’ve got our ambassador from Moscow working around the clock with Russian authorities to provide them with the information they are demanding,» he said.
The whey product was known to have been exported to Australia, China, Malaysia, Saudi Arabia, Thailand, Vietnam and Hong Kong, as well around New Zealand.
Federated Farmers chief executive Conor English said many people did not think Fonterra had handled the situation well.
«I think it’s critical that we make sure that we give the information and we’re open and honest and frank,» he said.
Prime Minister John Key confirmed yesterday the Government would hold an inquiry into the scare, alongside an investigation led by the Ministry for Primary Industries, and two internal Fonterra reviews.
Source: TVNZ
