Heads will roll over infant formula scare but CEO should survive, says industry source.
Heads will roll at Fonterra over the latest infant formula scare to hit the company, but chief executive Theo Spierings' job should be safe for the time being, say farming sources.
Spierings travelled to China from Europe at the weekend for meetings with manufacturers who have used contaminated whey powder supplied by Fonterra for use in infant formula and other products.
One well-placed source said "heads will roll" over the latest contamination, which has been sourced back to a dirty pipe at Fonterra's Hautapu plant in the Waikato. "I don't think it will go as far as Theo, because he has done the right thing in scooting up to China," the source said.
Spierings' predecessor, Andrew Ferrier, made the mistake of not travelling to China during the Sanlu melamine scandal, in which Fonterra was implicated, in 2008.