Sri Lanka lifts temporary ban on some Fonterra products

Monday 13th October 2014

Fonterra Cooperative Group says Sri Lankan health officials have lifted a temporary ban on some of it Anchor milk products, after testing showed the powder was safe.

Last week, Sri Lanka's Ministry of Health suspended the sale of three batches of 400 gram Anchor full cream milk powder after recieving complaints children who had consumed the product had become ill. Further testing has since cleared the milk powder as the cause of the illness, the Auckland-based company said in a statement.

"We were concerned to be informed a consumer had become ill and launched an immediate investigation to help try to find out what could be affecting them and to rule out any issues with our product," Leon Clement, Fonterra Brands Sri Lanka managing director said. “We have been working with the Ministry of Health to lift the temporary hold and are pleased that the ministry’s investigation has confirmed our own internal findings that there is no food safety or quality issue with our product.”

According to earlier Reuters news reports several children suffered food poisoning after consuming the product in the southern village of Girandurukotte, 224 kilometres from the capital Colombo. The newswire put the total quantity on hold at 76 metric tonnes.

In August last year, Sri Lanka's National Health Services Union won a temporary injunction to stop the sale of Fonterra products amid ongoing concerns over the levels of nitrates found in the milk powder. Fonterra subsequently suspended operations in the country after Sri Lanka’s National Freedom Front, a hardline nationalist political party, protested against the dairy exporter in a push to boost the businesses of local dairy farmers.

Sri Lanka's temporary ban came at a time of heightened food safety concerns for Fonterra, after it was forced to issue a global recall upon finding a possible trace of botulism causing bacteria in its milk powder. Testing has since shown there was no bacteria.

In calendar 2013, $223 million of New Zealand's $13.6 billion exports of dairy, honey and animal produce exports went to Sri Lanka, according to Statistics New Zealand. Fonterra is the world's largest dairy exporter and makes up the majority of New Zealand's dairy exports.

Units in Fonterra Shareholders' Fund, which give access to the cooperative's dividend stream, fell 0.5 percent to $6.36 and have gained 10 percent since the start of the year

BusinessDesk.co.nz

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