Fonterra Confirms No Melamine In Its Products

Media Release
21 February 2009

Fonterra Confirms No Melamine In Its Products

Fonterra today announced one of its suppliers, a German based company called Budenheim, had advised Fonterra that an iron supplement it supplies to food companies around the world had tested positive for melamine. Fonterra uses very small quantities of the iron supplement in 12 fortified whole milk powder products.

Fonterra said it had immediately stopped all production using the supplement and was sourcing a replacement product. In addition, as an added precaution Fonterra had undertaken extensive retesting of retention samples of the affected batches of Fonterra’s milk powder products.

No melamine had been detected in any of its products.

Fonterra is working with the New Zealand Food Safety Authority (NZFSA) and progressively reviewing each batch of product to ensure that the product is safe to go to market. Extensive and intensive research has been undertaken throughout the world to determine appropriate food safety levels for melamine. The products in question are all well within New Zealand, Australian, European and American safety standards.

Group Director Manufacturing and Supply Chain, Gary Romano, said: “based on all current world standards there is absolutely no health risks to consumers.

“Budenheim advised us last week that testing of the iron supplement, called Ferric Pyrophosphate, had detected melamine levels above the regulatory limit. The product is commonly used to provide additional nutritional value in food.

“The New Zealand Food Safety Authority guidelines for these products is 2.5 parts per million, and the Authority regards any concentration below 0.1 parts per million as a negative result.” he said.

Fonterra has calculated that, given the small amount of iron supplement used in some of its products, if melamine was present in the finished product it would be at levels 50 – 100 times lower than the NZFSA guideline.

Budenheim supplies Ferric Pyrophosphate to a number of food companies around the world. The iron supplement helps the development of red blood cells.

Budenheim is supplying Fonterra with a new iron supplement product which has tested negative for melamine and no further production of the relevant WMP will be undertaken until the new iron supplement is received.

- ENDS -

About Fonterra
- Fonterra is the world’s largest dairy exporter, with annual revenues of about NZ$17 billion*.
- As New Zealand’s largest and truly multinational business, Fonterra trades in 140 countries.
- Our portfolio includes dairy ingredients, liquid and powdered milks, cultured foods and yoghurts, butter, cheese and specialty foodservices products.
- Our brands include Anchor, Anlene, Anmum, Fresh n’ Fruity, Mainland, Peters, Brownes, Tip Top, and Chesdale.
* Fonterra reported revenues of NZ$19.5 billion for 14 months ended 31 July 2008.

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