New
Zealand dairy giant Fonterra, which is locked in a battle with Sri Lankan heath
officials over allegations of contaminated milk powder, has recalled 39 metric
tons of milk powder belonging to two batches as an attempt to ease fears,
CeyNews reported. Following the directive by the Food Advisory Committee of the
Health Ministry, Anchor One Plus (Batch no.107610163) and Anchor Full Cream
Milk Powder (batch no.0605C0883) batches distributed in March have been removed
from stores. Meanwhile, Sri Lanka’s court of
appeal issued an order to prevent
Fonterra Brands Lanka (Pvt) Ltd from
publishing any advertisements in the “manner and style deceiving the consumers
and public that the products imported by them are 100% perfect.”
However, Sri Lanka’s health ministry initially claimed that
they had not found any traces of DCD in milk samples they had sent to Thailand
for testing. Fonterra has countered the
claim and insisted that independent laboratory tests have confirmed that there
have been no DCD detected in milk products distributed in Sri Lanka and is
willing to work with ITI to correct
its test results. The company is adamant that while DCD has never been a food
safety risk, since June 1, 2013, every single batch of Fonterra product
entering Sri Lanka has been tested for DCD, using methods specified by the Sri Lankan health ministry.
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| Anchor Full Cream and One Plus Milk Powder |
Fonterra, which is the world’s largest dairy exporter, has
been accused of having dicyandiamide (DCD) in its milk power, a chemical used
in fertilizers to prevent them from soaking into rivers, which can be toxic in
large amounts. Fonterra has a large footprint in Sri Lanka with 65% market
share that climbs to 76% when yoghurt is included. The company, which operates
both a powder and liquid plant in the island, has pledged to recall the milk
but insists that it was done as a conciliatory measure to reduce panic and work
with government health authorities and is emphatic that the stock does not
contain DCD.
As many as 202 tests
carried out on Fonterra branded products by independent and internationally
recognised testing laboratories, AsureQuality and the Cawthron Institute show
no traces of DCD. “Fonterra takes its responsibility on safety and quality very
seriously. That is our top concern and we are dedicated to being completely
transparent with you and the public of Sri Lanka on matters of food quality and
safety, “Fonterra Brands Sri Lanka managing director Leon Clement told media. He
pointed out that there is widespread “confusion” among the public at the moment
and panic that all products are impacted by this recall and stressed that this
directive is limited to two selected batches and the rest of Fonterra products
are unaffected and safe for consumption.
Pressured by doctors and the New Zealand government’s
botulism alert, which was issued over the weekend resulting in China and Russia
recalling milk products from that country, health ministry officials on
Thursday decided to suspend sales of all milk products imported from New
Zealand, particularly those from Fonterra. Maldives has also pulled Fonterra
products off shelves, media reported.
Responding to a question, Clement stated that the company is
yet to calculate its losses from the DCD and botulism scare but it could run to
tens of millions given its high presence in the local market. According to the
Fonterra website, its powder plant in Colombo’s outskirts packs 475,000 packs
of milk each day and blends 5270 metric tonnes of milk powder every month. Its
liquid counterpart processors half a million yoghurt cups a day producing
10,370 tonnes of cultured products, 850 tonnes of pasteurszed milk and 2,460
tonnes of UHT products every year. Some of the liquid dairy is procured from
4,000 odd local farmers. Fonterra is New Zealand’s largest company with
revenues of around $16.8bn, with 90% of the milk collected being exported
around the world.
