Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
The co-op has confirmed that "a very little used piece of pipework" is behind the potential contamination of Fonterra's whey protein concentrate (WPC80). It is used by Fonterra's customers in a range of products including infant formula, growing up milk powder and sports drinks.
At a media conference at Fonterra's Auckland headoffice this morning, managing director NZ Milk Products, Gary Romano said after the contamination was detected, it went back immediately and isolated "a very little used piece of pipework that was not as sanitary as it should be".
"Further product coming from that plant has been tested," he says.
Fonterra is still refusing to disclose which of its eight customers were potentially affected by the contamination, saying it was up to them and their regulatory authorities to make those decisions.
But Fonterra chief executive The Spierings, who is overseas, is flying to China today to discuss the issue with authorities there. China is by far the largest market for infant formula. Many local and international infant formula manufacturers use Fonterra ingredients to make the product.
Despite repeated questioning, Romano refused to comment which global brands were impacted. He says Fonterra has no control over their customers' supply chains.
Fonterra sold some of the contaminated WPC80 to customers in New Zealand. But Romano pointed out Fonterra Brands, the co-op's consumer business was not impacted. However, he refused to say which local brands may be involved.
Romano says food safety is Fonterra's number one priority.
"We take matters of public health extremely seriously and we are doing everything we can to assist our customers in ensuring any product containing this ingredient is removed from the marketplace and that the public is made aware."
