Fonterra, Danone talks fail over WPC botulism scare

By CnAgri2013-12-04 09:42:03 Print

New Zealand-based dairy co-operative Fonterra and French dairy major Danone have failed to reach a commercial solution over losses from the recent whey protein concentrate (WPC80) contamination scare.

In October, Danone stated that it is seeking about ?350m in compensation from Fonterra over the issue.

Fonterra CEO Theo Spierings said that negotiations initiated by Danone in September have not reached an agreement, adding that the co-operative had worked very very hard for months on a commercial solution.

Reuters quoted Spierings as saying, "We're still in talks (with Danone).

"I put a commercial proposition on the table at the end of October and I haven't heard back on that proposition."

"If their counterproposal is commercial, I would of course entertain a commercial discussion. If their reply is legal, then we would have a different discussion," he added.

To deal with recall-related issues, the co-operative had allocated NZ$14m ($11.38m) which are yet to be tapped.

Spierings said that the company has inked commercial agreements with six of the eight companies affected by the recall; however, it could take time if it goes the legal route.

In August, Fonterra warned that a batch of whey powder produced in 2012 may be contaminated with bacteria that can lead to botulism, a dangerous form of food poisoning.

In response, China, Vietnam and Russia have imposed a ban on imports of milk powder and whey protein from the co-operative.

However, it was later revealed that the bacterium present in the WPC was harmless.