UPDATE: Fonterra CEO Theo Spierings has said that the Chinese import restrictions only affect Fonterra's whey protein concentrate, and he expects to see those restrictions lifted this week, Reuters reports.
Dive Summary:
- China has reportedly blocked imports of Fonterra Cooperative Group Ltd.'s milk powder after the New Zealand-based dairy company announced that some batches may contain botulism-causing bacteria, though Fonterra claimed as of Monday that it had received no official notice from the Chinese government.
- Companies including Hangzhou Wahaha Group, Danone’s Dumex brand and Coca-Cola Greater China may have tainted products as a result of Fonterra's problems, and Coca-Cola is recalling batches of its Minute Maid Pulpy Milky product, though the company expressed confidence that its products were sanitized.
- Russia has also announced a block on Fonterra imports as a result of the botulism fears.
From the article:
... The restrictions are a blow for New Zealand, which relies on exports to China, its biggest trading partner, for growth. Dairy products make up about a quarter of the South Pacific nation’s total overseas sales, which in turn account for about a third of economic output. Fonterra collects 89 percent of the milk produced in New Zealand. ...