Local infant formula producers are optimistic the 1080 threat is minimal but are fearful of the reputation damage it could cause as the industry recovers from earlier food safety scares.
Fonterra's 2013 false botulism scare spooked Chinese consumers and took a heavy toll on the infant formula industry.
New Zealand Infant Formula Exporters Association chairman Michael Barnett said the 1080 threat could have a worse impact on the industry than the 2013 scare.
"It's a test for our brand internationally."
In terms of the reaction in China, Mr Barnett said the next 48 hours were going to be critical.