Fonterra says the San Lu tainted milk scandal which killed at least six children in China has been "a terrible tragedy", after authorities there executed two men for their role in lacing milk with melamine.
Fonterra farmers held a 43 per cent stake in San Lu, though they have since written off their $201 million investment in the now-bankrupt Chinese company.
Nearly 300,000 children fell ill last year after drinking milk intentionally laced with melamine.
A total of 21 San Lu executives and middlemen were tried and sentenced in January by a court in the northern city of Shijiazhuang for their involvement in the case.
San Lu's former general manager, Tian Wenhua, got a life jail sentence after pleading guilty to charges that did not carry the death sentence.
Three other former San Lu executives were given between five years and 15 years in prison.
The official Xinhua news agency, citing a court statement, said Geng Jinping and Zhang Yujun were executed yesterday.
Geng Jinping was convicted of producing and selling toxic food, after selling more than 900 tonnes of tainted milk.
Cattle farmer Zhang Yujun was executed "for the crime of endangering public safety by dangerous means".
He produced more than 770 tonnes of melamine-laced protein powder, of which he sold more than 600 tonnes, between July 2007 and August last year.
A Fonterra spokesman said "the whole incident has been a terrible tragedy".
The two men who were executed did not work for San Lu, he said.
The company would not comment on the executions, saying they were a matter for the Chinese authorities.
San Lu officials were aware of the melamine problem by early August last year but the public was not warned until mid-September as China strove to put on a perfect face for the Beijing Olympics.
Fonterra had three directors on the San Lu board - Bob Major, Mark Wilson and a Chinese national, Patrick Kwok - and said it pushed for a full public recall of contaminated product from August 2 when it learned of the contamination.
Melamine, which can cause kidney stones, is meant to be used in making plastics, fertilisers and even concrete.
Its high nitrogen content allows protein levels to appear higher when it is added to milk or animal feed.
- NZPA
Fonterra speaks up after men executed
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