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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news