
Formula firms see orders cancelled
Kiwi baby formula companies are having orders cancelled in China and contract negotiations with Chinese customers terminated.
Kiwi baby formula companies are having orders cancelled in China and contract negotiations with Chinese customers terminated.
Public relations sharks are circling Fonterra and what is believed to be New Zealand's biggest image handling contract.
Roughly 70 per cent of NZ exports come from primary industries, writes Toby Manhire. Fonterra alone is about 10 per cent of the economy. When the sector sneezes, the country catches cold.
Fonterra's board will conduct a "full, thorough, formal review'' into the handling of the infant formula contamination scandal, says the Fonterra chairman.
Fonterra chief executive Theo Spierings has apologised to New Zealand but this is just the start and he will need to do more, writes Liam Dann.
"Was the Fonterra milk scandal caused by New Zealand being 'hostage to a blinkered devotion to laissez-faire market ideology'?" asks Bryce Edwards.
It was in a rather grand display of statesmanship that Labour leader David Shearer stood in Parliament on Tuesday to talk about the Fonterra whey powder contamination
Fonterra head Theo Spierings - just back from China - delivers an apology to NZ over the formula scare, but dodges questions about his own performance.
Fonterra's infant formula scare appeared to have little impact on dairy prices.
Fonterra chief executive Theo Spierings reckons Fonterra's reputation will be fully restored in the Chinese market.
Fonterra's chief apologised to consumers and the New Zealand public at a press conference today, saying all contaminated stock had been contained.
Fonterra said it had been fined $900,000 following the conclusion of a review by Chinese authorities into the pricing of dairy products in the people's republic.
International dairy prices made a "modest" fall at the first global dairy auction to be held in the aftermath of the Fonterra infant formula scare.
"Their inability to tell us with confidence that our two babies will not fall ill from any of its products ... is unforgivable."
Fonterra's boss reveals testing at an Australian plant confirmed clostridium bacteria in a semi-finished product later blended to make Karicare in NZ.
The baby milk botulism scare comes to light after changes at the top of Fonterra - including moves by the company to take more direct control of its communications strategy.
As days pass, emerging details raise more questions about the infant formula scare. Here's just a few of them.
China will not tolerate another slip-up from Fonterra, with the dairy giant caught up in its third contamination scare there since 2008, says a marketing expert.
There is widespread anger within the dairy industry over the length of time it was kept secret from the market while officials worked on a gameplan, writes Fran O'Sullivan.
Sri Lanka is the latest country to suspend New Zealand milk powder imports because of botulism fears from contaminated Fonterra products.
We need to diversify. We need a concerted government-level drive to build up our other export earners, writes Paul Brislen.
"There will be a reckoning, but now is not the time." Federated Farmers breaks its silence on the infant formula contamination scare.