Fonterra resumes operations in Sri Lanka

By CnAgri2013-08-29 11:27:22 Print

New Zealand-based multinational dairy co-operative Fonterra has resumed operations in Sri Lanka after a thorough assessment by management that there is no risk to Fonterra staff and that the situation has returned to normalcy.

Last week, the co-operative temporarily suspended its operations following protests over allegations that some of its milk products were contaminated.

The protests began after claims by the Sri Lankan authorities that some of Fonterra's products were found to be contaminated with traces of the fertilizer chemical dicyandiamide (DCD).

Fonterra chief executive officer Theo Spierings said that last week, the company temporarily suspended its operations in Sri Lanka to protect its people and farmer shareholders' assets.

"I am now confident that our people are safe and the business is ready to resume operations and continue selling high quality dairy nutrition to Sri Lankan people," Spierings added.

The Enjoining Order, which had prevented Fonterra from marketing its products in Sri Lanka, was overturned in the Gampaha District Court.

Fonterra stated that it is working with Sri Lankan and New Zealand government authorities on a long-term sustainable solution for its Sri Lankan customers, communities and dairy sector.

Meanwhile, the Ministry for Primary Industries (MPI) stated that tests on whey protein concentrate (WPC) manufactured by Fonterra, which was at the center of a global contamination scare, did not contain Clostridium botulinum, a bacterium which may produce the toxin that causes botulism.

Earlier this month, Fonterra announced that a batch of its whey powder produced in 2012 may be contaminated with bacteria that can lead to botulism.