Fonterra products didn't have botulism bacteria after all, New Zealand tests show

A Fonterra milk tanker arrives to Fonterra's Te Rapa plant near Hamilton in this August 6, 2013 file photo.

Credit: Reuters/Nigel Marple/Files

By Naomi Tajitsu

WELLINGTON | Wed Aug 28, 2013 3:49am EDT

WELLINGTON (Reuters) - Dairy giant Fonterra's products at the center of a global contamination scare this month did not contain a bacteria that could cause botulism, and posed no food safety threat, New Zealand officials said on Wednesday.

The Ministry for Primary Industries (MPI) said tests showed that whey protein concentrate manufactured by the world's largest dairy processor contained clostridium sporogenes, which cannot cause botulism, but which at elevated levels can be associated with food spoilage.

Original tests conducted by Fonterra and a New Zealand government research institute had indicated the presence of clostridium botulinum, raising fears that infant formula and sports drinks made from the product and widely exported could be potentially dangerous.

The botulism scare triggered a recall of products made by multinational brands that may have contained the whey protein in a number of markets, from China to the Middle East and Southeast Asia. It also prompted bans in Russia and Sri Lanka, while other countries stepped up scrutiny of Fonterra's dairy products.

"We went to world-leading labs, which are accredited and can test for this. That has given us a clear and definitive sense that it isn't clostridium botulinum," MPI acting director-general Scott Gallacher told reporters. "There is no food safety risk here."

Fonterra CEO Theo Spierings said he was "very relieved" that the MPI's tests showed the company's products did not pose any food safety risk. He said Fonterra "did the right thing" in announcing the possible risk earlier this month.

"When you go through a global recall, you know it will affect your reputation," Spierings told reporters. "If we had not acted on this, and if something had happened with one child in the world, then it would have caused a massive reputation issue in the long term, or even you could be wiped off the map and possibly face closure."

Spierings said Fonterra's interim tests had isolated the possible presence of either clostridium sporogenes or clostridium botulinum, and that the final stage of the company's testing had shown a positive result for the botulinum strain.

He said he would not judge any mistakes which may have occurred in the testing process. Fonterra has said the contaminated whey protein concentrate was caused by a dirty pipe at one of its processing plants. The MPI said it began its own independent tests in early August after being informed by Fonterra of the possible contamination.

"EMBARRASSMENT"

New Zealand Trade Minister Tim Groser said the initial contamination scare based on Fonterra's initial test result was "an embarrassment" to New Zealand, whose reputation as a source of clean, safe food products was questioned by global consumers. Fonterra controls around a third of the world's dairy exports.

"We checked the information, the information turned out to be false, the consequences of this have been very serious, (we're) not comfortable about that, and we need some answers to how all this happened," he told Radio New Zealand, noting that a government inquiry was one of four currently underway into the affair.

The ministry's test results, giving the all clear from potential botulism-causing bacteria, could help repair Fonterra's reputation. "Obviously, it's caused some damage, but we shouldn't lose sight of the fact that Fonterra did raise the alert even if it wasn't absolutely certain," said BNZ economist Doug Steel.

Fonterra said it resumed operations in Sri Lanka after suspending activity at its offices and factories there late last week following protests against its milk products. Fonterra has 755 employees in Sri Lanka - where New Zealand supplies two-thirds of annual milk powder imports.

Trading in Fonterra's Shareholders Fund units was suspended earlier on Wednesday.

(Additional reporting by Gyles Beckford; Editing by Ian Geoghegan)

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Fonterra says China-bound milk powder halted in May for high nitrite

1 of 3. New Zealand Foreign Minister Murray McCully is seen behind Chinese and New Zealand flags during a group interview in Beijing August 22, 2013.

Credit: Reuters/Petar Kujundzic

By Naomi Tajitsu and Megha Rajagopalan

WELLINGTON/BEIJING | Thu Aug 22, 2013 7:15am EDT

WELLINGTON/BEIJING (Reuters) - New Zealand's Fonterra, the world's biggest dairy exporter, caught up in a contamination scandal this month, said on Thursday it was also forced to withdraw 42 tons of milk powder bound for China because of high nitrite levels.

Dairy products account for about a quarter of New Zealand's export earnings, and China is its biggest buyer of milk powder.

The high nitrite levels were first brought up by the official China Daily in late July and have dealt another blow to the company after it announced this month that it had found bacteria that could cause food poisoning in some products.

Fonterra had to apologize for a milk powder contamination scare in China after contaminated whey protein concentrate had been sold to China, Malaysia, Vietnam, Thailand and Saudi Arabia, and used in products including infant milk powder and sports drinks.

The company said on Thursday a shipment of powder had also been halted at the Chinese border in May after tests showed nitrite levels higher than allowed in China, although it had been approved for export after testing in New Zealand.

Nitrites occur naturally in water, soil and food and can be used as fertilizers and preservatives. Excessively high levels can be toxic.

Fonterra's group director of food safety and quality, Ian Palliser, said the milk powder showed nitrite levels of between 1.4 parts per million and 1.8 ppm when it was shipped from New Zealand, but showed higher levels in Chinese tests.

"The limit is 2 parts per million in China and the product tested at somewhere between 2.4 ppm and 2.8 ppm," Palliser told Radio New Zealand.

He added that China had a much lower threshold for nitrite levels than New Zealand, where levels of up to 5 ppm are considered safe for domestic consumption. The levels were "not a food safety issue whatsoever", Palliser said.

"The levels were below the New Zealand standards. This product could have been sold safely in New Zealand."

Fonterra said it had been in full control of the affected product and none of it had reached the retail supply chain.

Wellington has voiced frustrations over Fonterra's foot dragging in disclosing the contamination issue, and during a visit to China on Thursday, Foreign Minister Murray McCully sought to distance the country from Fonterra's woes.

"Fonterra has some work ahead of it in rebuilding Chinese consumer confidence," he told reporters in Beijing after meetings with State Councilor Yang Jiechi and Foreign Minister Wang Yi.

"We expect from our exporters that there should not be any mistakes ... When Fonterra disappoints customers, they also disappoint New Zealand."

Yang, in meetings with McCully, urged New Zealand to improve food safety, Chinese state media reported.

"We hope the New Zealand side will appropriately handle food safety issues, including the safety of dairy products, exported to China, and substantially ensure Chinese consumers' interests," Yang said, according to official newswire Xinhua.

Fonterra's much smaller competitor, Westland Milk Products, had export certificates revoked this week for a small quantity of the protein lactoferrin because unacceptable levels of nitrates were discovered in four consignments.

(Editing by Nick Macfie and Clarence Fernandez)

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