Sri Lanka lifts temporary ban on some Fonterra products
By Suze Metherell
Oct. 13 (BusinessDesk) - Fonterra Cooperative Group says Sri Lankan health officials have lifted a temporary ban on some
of it Anchor milk products, after testing showed the powder was safe.
Last week, Sri Lanka's Ministry of Health suspended the sale of three batches of 400 gram Anchor full cream milk powder
after recieving complaints children who had consumed the product had become ill. Further testing has since cleared the
milk powder as the cause of the illness, the Auckland-based company said in a statement.
"We were concerned to be informed a consumer had become ill and launched an immediate investigation to help try to find
out what could be affecting them and to rule out any issues with our product," Leon Clement, Fonterra Brands Sri Lanka
managing director said. “We have been working with the Ministry of Health to lift the temporary hold and are pleased
that the ministry’s investigation has confirmed our own internal findings that there is no food safety or quality issue
with our product.”
According to earlier Reuters news reports several children suffered food poisoning after consuming the product in the
southern village of Girandurukotte, 224 kilometres from the capital Colombo. The newswire put the total quantity on hold
at 76 metric tonnes.
In August last year, Sri Lanka's National Health Services Union won a temporary injunction to stop the sale of Fonterra
products amid ongoing concerns over the levels of nitrates found in the milk powder. Fonterra subsequently suspended
operations in the country after Sri Lanka’s National Freedom Front, a hardline nationalist political party, protested
against the dairy exporter in a push to boost the businesses of local dairy farmers.
Sri Lanka's temporary ban came at a time of heightened food safety concerns for Fonterra, after it was forced to issue a
global recall upon finding a possible trace of botulism causing bacteria in its milk powder. Testing has since shown
there was no bacteria.
In calendar 2013, $223 million of New Zealand's $13.6 billion exports of dairy, honey and animal produce exports went to
Sri Lanka, according to Statistics New Zealand. Fonterra is the world's largest dairy exporter and makes up the majority
of New Zealand's dairy exports.
Units in Fonterra Shareholders' Fund, which give access to the cooperative's dividend stream, fell 0.5 percent to $6.36
and have gained 10 percent since the start of the year
(BusinessDesk)