UPDATE: 1080 threat to dairy products investigated since Nov

UPDATE: 1080 threat to dairy products investigated since November

(Updates with comment from Fonterra, Tatua, Food and Grocery Council, updates shares and dollar)

By Suze Metherell

March 10 (BusinessDesk) - Threats to contaminate infant and other dairy formula with 1080 poison have been under investigation by the Police and the Ministry of Primary Industries since November, it was revealed this afternoon, although tests have all been clear so far.

The government agency tested over 40,000 raw milk and product samples after Federated Farmers first received anonymous threats in the mail, which included infant formula laced with the poison, which is controversially used to control possums and other introduced pests that infest New Zealand native bush. The letters threatened to contaminate dairy formulas if the use of 1080 wasn't abandoned by the end of this month.

"The combined MPI and industry testing programmes confirm there is no 1080 in infant and other formula," Deputy Director-General Scott Gallacher said. "We have tested just over 40,000 raw milk and product samples and we have had no 1080 detections."

Fonterra chief executive Theo Spierings told a briefing in Auckland that the government and police are leading the investigation and had informed key trading partners, while the dairy industry had worked together to lock down the supply chain.

Spierings said it was “far too early” to think about the financial implications the threat might have on its global business and Fonterra is focusing on ensuring the safety of consumers. “This is a despicable criminal act to blackmail New Zealand,” he said.

Tatua Cooperative chief executive Paul McGilvary told the briefing the dairy sector will maintain heightened security measures until the people who made the threats are apprehended. The dairy industry was committed to finding an alternative to using 1080 poison, but making threats against the country was “not the way to do it,” he said.

Katherine Rich, chief executive of the Food and Grocery Council, condemned "the criminal who has issued blackmail threats to damage our food supply" and said the delay in informing the public about the threats was down to companies and authorities checking their veracity.

"We support the actions they've taken because whenever you receive a letter like this, particularly one that has timeframes, you've got to be able to research the nature of the threat thoroughly," Rich said. "Within the industry many companies will regularly get letters from members of the public so you have to be able to make a judgment about whether or not it is appropriate to act."

The announcement comes after NZX put a trading halt across all dairy companies. Units of the Fonterra Shareholders' Fund fell 0.9 percent to $5.80 when trading resumed and Synlait Milk fell 3.4 percent to $2.85. Trading was also halted in the NZX Dairy Futures and Options market.

The kiwi dollar dropped almost half a US cent ahead of the trading halt imposed on listed dairy companies, falling as low as 72.75 US cents, the lowest in more than a month, and was recently trading at 72.87 cents.

Since the threat the MPI with other government agencies have put additional measure in place to protect against any threat, including "strengthened security measures in retail stores", enhanced testing and increased vigilance in the supply chain.

(BusinessDesk)

© Scoop Media