Potentially dangerous Karicare infant formula remained on sale in China's massive online "grey market" last night.

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.

China is questioning New Zealand's '100 per cent pure' brand as headlines worldwide bring attention to Fonterra's milk formula scandal.

Fallout from Fonterra's milk formula scandal could spread to other agricultural exports, but the brand damage will depend on how the co-op reacts next.

Fonterra chief executive Theo Spierings has expressed regret for consumer anxiety caused by revelations that batches of whey protein had been contaminated.

Fonterra Fund shares have dropped by 62 cents in early trading as markets digest the impact of the contamination scare on our biggest exporter.

Fonterra's unit price is likely to take a hit this morning and the New Zealand dollar has already fallen to a month low.

"One dirty pipe. It might have done less damage if it had exploded," writes Liam Dann.

Eight companies may have received the contaminated whey protein from Fonterra.

Fonterra's dairy product recall made headlines worldwide, as New Zealand's export markets react to reports of the botulism scare.

Fears that NZ milk products could contain bacterium that may cause botulism is big news in China, with the story featuring prominently in major newspapers.

Russia has made one of the most extreme responses to Fonterra's contamination scare so far, banning all goods made by the NZ dairy giant, according to media reports.

Authorities have recalled up to 1000 tonnes of dairy products across NZ and seven others, after Fonterra announced tests had found a bacterium that could cause botulism.

The potential contamination of Fonterra products with botulism occurred as a result of a dirty pipe at the company's Hautapu plant, it says.

Anchor says its light-proof milk bottles have been fully integrated into the country's recycling system.

What happens to NZ if China's mothers decide breast is best?

Fonterra has confirmed about 300 jobs from its head office in Auckland would go after a review of its support services, saving the company $65 million a year.

Fonterra chief Theo Spierings wants Government buy-in on a national strategy, reports Fran O'Sullivan.