InvestSMART

Fonterra to woo China

New Zealand diary giant Fonterra's board of directors is heading to China on a fence-mending exercise after last month's botulism scare.
By · 2 Sep 2013
By ·
2 Sep 2013
comments Comments
New Zealand diary giant Fonterra's board of directors is heading to China on a fence-mending exercise after last month's botulism scare.

Fonterra chairman John Wilson and chief executive Theo Spierings will lead the board visit to China this week in an effort to rebuild trust in its products and food-safety record.

Last week it was confirmed that botulism was not present in Fonterra's whey protein concentrate, used in products such as infant formula, which is popular in China.

"Now that it's been confirmed that there was no Clostridium botulinum in our whey protein concentrate, we need to address any remaining concerns our stakeholders in China may have," Mr Wilson said in a statement.

"The feedback we have been getting is that people believe we did the right thing in initiating the precautionary recall, but at the same time we want to provide every assurance about our food safety and quality systems and processes."

He said the visit provided an important opportunity to help rebuild trust and respect for Fonterra and New Zealand dairy products.
Google News
Follow us on Google News
Go to Google News, then click "Follow" button to add us.
Share this article and show your support
Free Membership
Free Membership
InvestSMART
InvestSMART
Keep on reading more articles from InvestSMART. See more articles
Join the conversation
Join the conversation...
There are comments posted so far. Join the conversation, please login or Sign up.

Frequently Asked Questions about this Article…

Fonterra's board, led by chairman John Wilson and CEO Theo Spierings, is travelling to China to rebuild trust and address any remaining concerns among stakeholders after last month's botulism scare.

The scare related to a precautionary concern that Clostridium botulinum might be present in Fonterra's whey protein concentrate, an ingredient used in products such as infant formula that are popular in China.

No. It was confirmed last week that there was no Clostridium botulinum detected in Fonterra's whey protein concentrate.

Fonterra chairman John Wilson and chief executive Theo Spierings are leading the board visit to China to provide assurances about the company’s food safety and quality systems.

Fonterra says the precautionary recall was the right initial step, and the board visit aims to directly address concerns and provide assurances about its food-safety and quality systems and processes.

According to Fonterra, the visit is an important opportunity to rebuild trust and respect for both Fonterra and New Zealand dairy products among Chinese stakeholders.

Fonterra initiated a precautionary recall to protect consumers while investigations took place. The company says feedback indicates people believe initiating the recall was the right thing to do.

Everyday investors may want to watch for clear communications from Fonterra about the outcomes of the China visit, further reassurances or audits of food-safety and quality systems, and any updates confirming restored customer confidence.