Fonterra botulism scare 'over'

All supplies of potentially contaminated infant formula had been removed from international markets, and there was almost no more risk for consumers, Theo Spierings, Chief Executive of New Zealand dairy company Fonterra, said Wednesday.

Speaking at a news conference in Auckland, New Zealand, Spierings said that 18 tons of tainted whey protein concentrate had been turned into 2,300 tons of infant formula. The baby food had now been successfully contained in warehouses or recalled, he added.

"I apologize for the discomfort and anxiety and distress this has caused," he also said.

New Zealand's Fonterra, which is one of the world's largest dairy producers, announced Saturday that tons of infant formula, sport drinks and other products sold in seven countries could be tainted. Tests had found bacteria in whey protein concentrate that can cause botulism – a potentially fatal food poisoning.

At the news conference, Spierings also said that he had just returned from China – Fonterra's biggest market which had stopped importing whey-based dairy products from New Zealand.

Noting that the situation there was stable, Spierings said that he had vowed earlier not to leave China before markets, consumers and customers could feel safe again.

Asked if he would resign over Fonterra's handling of the scare, Spierings added: "It's not up to me to answer, that's up to the board."

Fonterra price-fixing

Meanwhile, Fonterra, as well as another five international dairy producers, have been fined a total of $100 million (75 million euros) for fixing prices of dairy in the Chinese market.

On Wednesday, China's National Development and Reform Commission (NDRC) fined Fonterra 4 million yuan ($653,000), Dutch dairy cooperative FrieslandCampina 48 million yuan and Abbott Laboratories 77 million yuan.

Penalties were even higher for Hong Kong-listed Biostime with 162 million yuan, French food group Danone was fined 172 million yuan and US dairy giant MeadJohnson was fined 203 million yuan.

In a statement, NDRC said the fines were imposed as the companies were found guilty of restricting competition, setting curbs on minimum prices for distributors and for using a variety of methods to disrupt market order.

“We believe the investigation leaves us with a much clearer understanding of expectations around implementing pricing policies,” Fonterra's Greater China and India President Kelvin Wickham said in a statement.

uhe/mz (Reuters, AP, AFP, dpa)