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

 

Fonterra seeking more details over Beingmate licensing issue

Fonterra seeking more details over Beingmate licensing issue

By Paul McBeth

June 20 (BusinessDesk) - Fonterra Cooperative Group wants more information from its Chinese partner Beingmate Baby & Child Food amid reports the infant formula firm didn't make sure product sourced from another supplier met its licensing conditions.

The Spin Off website today reported Beingmate was among several infant formula firms found to have breached manufacturing rules, saying a DHA algae oil powder was inconsistent with its licence. A Fonterra spokesman said the Kiwi dairy company was seeking more information, but that it appeared to be a procedural issue over the licences held by other suppliers and that the local Chinese authorities had accepted Beingmate's steps to address the problem.

He stressed that the problem wasn't related to any Fonterra product, and said the New Zealand company is trying to better understand what the remedial steps are.

Fonterra owns an 18.8 percent stake in Beingmate which it bought in 2015 for about $755 million as part of its plan to break into China's second- and third-tier cities, where the Kiwi company had limited exposure. The investment hasn't panned out as well as expected, with Beingmate reporting losses and Fonterra wrote down the stake by $405 million in the first half of the current financial year, calling the performance "unacceptable".

Beingmate was supposed to be the turning point for Fonterra's Chinese plans, which have included developing farming hubs in the world's most populous nation, rebuilding its brand after the 2013 whey protein concentrate food scare and the 2008 melamine scandal, where its then-partner San-Lu added the chemical to milk products to artificially improve their protein levels, killing six infants and hospitalising more than 800.

Fonterra Shareholders Fund units rose 0.8 percent to $5.05 today.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Intertubes: Hawaiki Cable In Business

Hawaiki Submarine Cable has begun commercial operations for its 15,000 km fibre optic deep-sea cable linking Australia, New Zealand, the Pacific and the United States. More>>

ALSO:

Geothermal: World-Leading Silica Extraction Project

Geo40, in cooperation with Contact Energy and the Ngati Tahu Tribal Lands Trust, is this month set to start commercially extracting silica from geothermal fluid as part of a world-leading sustainable energy partnership. More>>

Electrical Vehicles: New Database of Charging Stations

EVRoam, a real-time database of public charging infrastructure, provides one view of a safe, reliable and interoperable public charging network for electric vehicles in New Zealand. More>>

ALSO:

FMA Mulls Legal Action: Customers Not Focus At Insurers

Most firms had processes in place to identify when a customer was being advised to replace life or health insurance... Generally, these processes seemed oriented towards reducing firms’ legal risk, rather than to identifying and mitigating risks for customers. More>>

ALSO:

Brands Sale To RJ's: Nestle Job Losses “A Bolt From The Blue”

E tū has about 200 members at the plant, where up to 55 workers could lose their jobs... Well-known Kiwi brands affected by the sale include Mackintosh’s, Heards, Black Knight liquorice, Life Savers and Oddfellows. More>>

ALSO:

'Sanctuaries': New Seabed Mining Project Threatens Endangered Species

Greenpeace is shocked to discover that a new seabed mining exploration permit has been awarded inside a Marine Mammal Sanctuary, and is calling on the Government to reject all attempts to mine the seabed. More>>

ALSO: