A food scare as serious as the risk of botulism in infant formula produced by New Zealand's biggest company will inevitably result in a call for heads to roll, and for Government inquiries into what went wrong.

Economic Development Minister Steven Joyce says the Government is yet to decide whether there will be a separate inquiry into Fonterra on top of one planned .

Fonterra chairman John Wilson said yesterday he was "deeply concerned" by the infant formula contamination scare.

Helplines are still being flooded with queries from thousands of concerned parents following Fonterra's infant milk contamination scandal.

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.

Daily newspapers in China have held nothing back in dealing to New Zealand over Fonterra's tainted milk powder crisis.

As Fonterra's boss said sorry to NZ over the formula scare, it emerged four batches of potentially contaminated formula reached Hong Kong and Australia.

More than 80,000 cans of suspect infant formula have been recalled in Hong Kong and a hotline set up by the city's authorities has been fielding hundreds of calls.

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 chief executive Theo Spierings reckons Fonterra's reputation will be fully restored in the Chinese market.

Fonterra's infant formula scare appeared to have little impact on dairy prices.

Fonterra's chief apologised to consumers and the New Zealand public at a press conference today, saying all contaminated stock had been contained.

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."

"If there's a dent to that reputation that dent has the potential to hurt everybody ... " Tourism Industry Association chief Martin Snedden's blunt message.

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.

The Government's handling of the Fonterra infant formula contamination scare is difficult to fault ... so far, writes John Armstrong.

We need to diversify. We need a concerted government-level drive to build up our other export earners, writes Paul Brislen.

"I think all the brands have safety issues," said a Chinese father yesterday, one of many left in a panic, unsure of what's safe to give their kids to drink.

Fonterra's boss reveals testing at an Australian plant confirmed clostridium bacteria in a semi-finished product later blended to make Karicare in NZ.