Jeremy Kerr's threat to contaminate milk formula with the poison 1080 was the "straw that broke the camel's back", putting some smaller exporters out of business, says an industry boss.
"I have a look at the small exporters - I can see the botulism scare and issues arising from the Chinese market and then this coming in. This was the straw that broke the camel's back. This was the one that shut off the market to them and meant that for weeks and weeks ... they stopped sending product and ... lost the confidence of their customers in China," said Michael Barnett, chairman of the New Zealand Infant Formula Exporters Association.
While prosecutor Christine Gordon yesterday put the cost of Kerr's blackmail at $37 million, Barnett said the damage done to some exporters will take years to repair.
Justice Geoffrey Venning, who yesterday sentenced Kerr to eight and a half years' jail, said that the potential impact of his actions on New Zealand's trade relationship with China and others was "extremely serious".
Kerr, the owner of another pest-control product, Feratox, mixed highly concentrated amounts of 1080 with baby milk formula and posted them to Fonterra and to Federated Farmers. Included in the package was a letter demanding the country stop using 1080 or he would release poisoned infant milk powder into the Chinese market and one unspecified market.