Dive Summary:
- New Zealand's Ministry for Primary Industries has announced that 195 tests conducted in the wake of the recent Fonterra milk powder botulism scare have shown the bacteria previously believed to be Clostridium botulinum was actually Clostridium sporogenes.
- Countries including China, Russia, Sri Lanka and Vietnam have held up Fonterra imports or subjected them to further testing, and "damage has been done to New Zealand's international reputation," according to Damien O'Connor, a New Zealand legislator.
- Fonterra has also faced issues over nitrite levels in its products, sparking concerns in China, where much of the company's $16 billion in revenue comes from.
Dive Insight:
These findings may be good news for Fonterra, but nitrite questions, Westland Milk Products Co.'s recent problems with lactoferrin powder and the reputation-related fallout from this scandal will haunt New Zealand's dairy industry for the foreseeable future. In a country where as much as 10% of the national economy hinges on how well dairy products perform, and ongoing testing demands, export issues or outright bans represent significant problems.