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


Vietnam puts Fonterra whey protein under scrutiny, no ban

Vietnam puts Fonterra whey protein imports under scrutiny, no ban in place

By Paul McBeth

Aug 7 (BusinessDesk) - Vietnam has put checks in place to ensure the quality of dairy products using whey protein concentrate made by Fonterra Cooperative Group and has recalled affected products, but hasn’t implemented an outright ban on imports from New Zealand’s biggest company.

The extent of trade bans on New Zealand products has been unclear with international media fingering China, Russia, Vietnam and Sri Lanka as imposing suspensions. New Zealand Trade Minister Tim Groser told Parliament yesterday only China has suspended imports of certain products, while Russia, Singapore and Vietnam have recalled affected products, and Malaysia, Thailand, Viet Nam, Singapore, Australia, Saudi Arabia, Hong Kong are reviewing the situation.

The Vietnam Trade Office told BusinessDesk in an emailed statement its Food and Safety Department was informed of Fonterra’s potential food contamination on Aug. 3 and said the department wants companies to check and report on dairy products containing the whey protein.

“The department has requested all companies which do business on dairy products to check and make reports on importing, trading and using protein concentrate ingredients and products containing whey protein concentrate materials produced by Fonterra - New Zealand,” the Vietnam Trade Office said.

“Any raw material, products of lots of warned by the Ministry of Primary Industry of New Zealand must be recalled and reported immediately to the Department of Food and Safety,” it said.

New Zealand’s MPI has recalled two Nutricia Karicare infant formula products.

Finance Minister Bill English yesterday told Parliament the export value of the two potential tainted products to China was $125 million, or about 0.25 percent of total exports.

“There is some longer-term risk, of course, of effects to our reputation, but, if these circumstances are managed transparently and effectively, we ought to be able to reduce those risks,” English said. “The economic impact of the amount of product currently under restrictions is sufficiently small and would not have a discernible impact on our GDP (gross domestic product).”

The food contamination scare was kicked off on Saturday when Fonterra went public on news it had found the bacteria Clostridium, which can cause botulism, in three batches of whey protein concentrate which had affected eight of its customers.

Those concerns have subsided as the contamination appears to have been relatively contained and the New Zealand dollar and units in the Fonterra Shareholders’ Fund have recovered from a sell-off on Monday.

Fonterra’s GlobalDairyTrade auction showed the average price of dairy products fell 2.4 percent on a trade-weighted basis, though a record 60,587 tonnes was sold for some US$293.7 million.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>

MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>

DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>

Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>