Sunday, August 11, 2013

Please explain...

The Government will sign off today on its inquiry into Fonterra's handling of its contamination issue; Stuff reports:

Cabinet will today sign off a ministerial inquiry into the Fonterra food safety crisis as the dairy co-operative is dealt a fresh blow over a chemical scare.
Sri Lanka has ordered a recall of two batches of milk powder over a possible dicyandiamide (DCD) contamination.
But Fonterra disputes the test results and says no traces of the agricultural chemical were found in more than 200 tests by "independent and internationally accredited labs".
The new scare comes in the wake of a botulism alert involving the dairy co-operative last week, shaking consumer faith in the sensitive Chinese market.
The 2008 Sanlu baby milk melamine poisoning scandal and a DCD scare earlier this year have bruised Fonterra's international reputation and seen scorn poured on New Zealand's 100% Pure brand.
Later today Prime Minister John Key will outline details of a top level government inquiry. It will run alongside an investigation by the Ministry for Primary Industries, and two internal Fonterra reviews.
The company's handling of the whey powder saga is under scrutiny after delays in alerting the Government and the public to the contamination. 

Whilst Fonterra and ultimately New Zealand's reputation has been bruised by this scare, the urgency and seriousness of the Government's response has ensured that the damage will be temporary, and of a relatively minor nature. The majority of Fonterra's exports have been unaffected, and there are no indications at this point of any actual health issues caused.

Kudos are due to Trade Minister Tim Groser and Economic Development Minister Steven Joyce together with a legion of MPI officials. Mr Groser's credentials as a long-time trade negotiator have proved invaluable in providing reassurances to our trading partners.

Fonterra will be under no illusions that it has dodged a bullet in terms of the contamination leading to actual cases of botulism. Whilst John Key said last week that then was not the time for recriminations however, Fonterra is about to face some pretty significant scrutiny, and rightly so.

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