San Lu Judgement

Media Release

24 January 2009

San Lu Judgement

The CEO of Fonterra, Mr Andrew Ferrier today said that the company had refrained from making any comment on the criminal proceedings in China until he had had the opportunity to review the findings of the court.

“It would have been irresponsible to comment on the published verdicts without first establishing a full understanding of the court’s decision,” he said.

“We accept the court’s findings, but Fonterra supports the New Zealand Government’s position on the death penalty.

“We have been shocked and disturbed by the information that has come to hand as a result of the judicial process.

“Fonterra deeply regrets the harm and pain this tragedy has caused so many Chinese families.

Mr Ferrier said he wished to reiterate very clearly that Fonterra had no knowledge of the criminal actions taken by the four San Lu managers.

“We certainly would never have approved of these actions,” Mr Ferrier said.

“As we have stated throughout, Fonterra consistently pushed for a full public recall of contaminated product from August 2 when we learned of the contamination. Additionally Fonterra clearly communicated both verbally and in writing to San Lu that its product must contain no melamine.”

Mr Ferrier said: "I am appalled that the four individuals deliberately released product containing melamine. These actions were never reported to the San Lu Board and fundamentally go against the ethics and values of Fonterra."

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