Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fonterra units hold up in early trading, despite DCD scare

Fonterra units hold up in early trading, despite DCD scare

By Pattrick Smellie

Jan 28 (BusinessDesk) - Fonterra Shareholders Fund units took a small, immediate knock as trading opened on the NZX this morning after a weekend in which international media latched onto the news that small traces of a nitrate inhibitor had been found in some Fonterra milk powder.

FSF units dropped 0.41 percent, or 3 cents, to $7.20 at the open of NZX trading, and bid and ask prices were displayed briefly as low as $7.14 and $7.18 before recovering to a range of $7.20 and $7.23 in the first 10 minutes of trading and appeared to be holding those levels.

Global investor reaction may yet occur in other markets, although the Australian Stock Exchange is closed today for a national holiday long weekend.

Despite assurances the levels of the chemical, known as DCD, are far below European Union food safety thresholds, the incident has produced scare-mongering reports which Fonterra will now have to work hard to counter.

Prime Minister John Key used his weekly morning radio slot on Newstalk ZB to label some international media reports as "misinformation" after highly reputable sources such as the Wall Street Journal website headlined reports with the question" "Is New Zealand milk safe to drink?"

''The situation here is that there is no health risk, at all," he said. "Key told Newstalk ZB he would be concerned if international consumers reacted to ''misinformation''.

''The situation here is that there is no health risk, at all," he said, echoing comments by Fonterra chief executive Theo Spierings, who issued media statements over the weekend to try and reassure export markets.

''Once you get these sort of stories written, even if they're incorrect, it's a big job to close them down," said Key.

Theo Spierings said reactions were ''way out of proportion''.

Nitrous oxide is a greenhouse gas produced by grazing stock and accounts for around 16 percent of the country's annual emissions contributing to climate change. DCD has been used by some farmers to limit such emissions, with nitrogen inhibitors being one of the few technologies currently available to farmers to cut emissions, which in total account for around half New Zealand's total annual GHG emissions.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news