Posts
There
are two sides to every story. I would like to get the Sri Lankan
side. Fonterra earlier “rubbished” Sri Lankan testing regime –
a great way to deal with one's trading partners.
Fonterra
suspends Sri Lanka operations after milk powder protests
New
Zealand dairy giant Fonterra Co-operative said on Friday it had
suspended operations in Sri Lanka after the world's largest dairy
exporter faced product bans, court cases and angry demonstrators over
its milk products in the country
23
August, 2013
Sri
Lanka's food safety authorities have said they found high levels of
the agricultural chemical dicyandiamide (DCD) in two batches of milk
powder it tested, an accusation that Fonterra has vigorously
disputed.
Fonterra
halts Sri Lanka operations after protests
Fonterra
has temporarily suspended its operations in Sri Lanka because the
situation there has become "unstable" for the dairy
cooperative giant.
23
August, 2013
Chief
executive Theo Spierings said the move was a "precautionary
step".
He
said Fonterra had two priorities: protecting its people, and
protecting its farmer shareholders' assets.
"The
temporary suspension is the right thing to do," he said in a
statement.
"It
is a precautionary measure to ensure our 755 people working there are
safe. We have closed our plants and office in Sri Lanka, and have
asked our people to stay at home."
The
Associated Press (AP) reported from the Sri Lankan capital Columbo
that a government-allied group protested opposite Fonterra's local
office on Thursday demanding that the company respect a court order
and withdraw what it said was contaminated milk products from the
market.
The
protest by about 200 people from the Lakmawa Diyaniyo (Daughters of
Lanka) came a day after a court issued a summons to Fonterra Brands
Sri Lanka and four of its top officials to face contempt of court
charges for allegedly not adhering to an order issued by a Sri Lankan
judge last week suspending sales and advertising of all Fonterra milk
products, the AP report said.
Spierings
said Fonterra had provided assurances to the Sri Lankan authorities
about the safety and quality of Fonterra's products, and remained
committed to the Sri Lankan people.
"Recent
events, however, have made it difficult to maintain day-to-day
operations, and we need to get them resolved," he said.
Fonterra
Sri Lanka is currently subject to a court "enjoining order"
which has shut down its ability to sell product, advertise it or make
public statements in any way with customers or consumers in Sri
Lanka. Legal action is underway, he said.
"We
are also working with Sri Lankan and New Zealand government
authorities on a long-term sustainable solution for our Sri Lankan
customers, communities and dairy sector,'' Spierings said.
Sri
Lanka is a key market for the New Zealand dairy industry, which has
had a presence there for more than 35 years.
Fonterra
faces protest
Sri
Lankan demonstrators shout slogans during a protest against Fonterra
products in front of the main factory in Biyagama, about 21 km from
capital Colombo, on August 22. Demonstrators demanded that all
Fonterra products in Sri Lanka be banned.
A
Sri Lankan court on Wednesday issued a summons to Fonterra Brands
Lanka, the local company of New Zealand's Fonterra, and four of its
top officials to face contempt of court charges for not adhering to
an earlier ruling that banned sales and advertising of all Fonterra
milk products.
Fonterra
strongly refuted the claim and said it believed it had complied with
all aspects of the enjoining order.
Fonterra
to be charged for contempt of court
Daily
News (Sri Lanka),
20
August, 2013
Counsel
for the petitioner informed the Appeal Court yesterday that despite
an interim order by the Courts preventing Fonterra from advertising
its products as 100 per cent perfect, the Company was continuing its
publicity campaign by distributing hand bills under the signature of
its Managing Director claiming its ‘Anchor’ brand products to be
100 per cent safe for consumption.
Counsel
for the petitioner stated that papers would be filed against the
dairy company for contempt of court because it was continuing its
publicity campaign despite court orders not to do so.
He
stated the above when a writ petition was taken up in Courts against
an advertisement carried out by Fonterra. The Counsel was appearing
on behalf of a consumer petitioner.
The
Court of Appeal later granted approval to proceed with the filing of
the papers on the contempt of court charge and the petition.
The
Court of Appeal also extended the interim order on Fonterra to
refrain from advertising its products as ‘100% perfect’, till
September 3.
Sri
Lankan court summons Fonterra officials to face contempt charge
August,
2013
A
Sri Lankan court on Wednesday issued a summons to Fonterra Brands
Lanka, the local company of New Zealand's Fonterra (FSF.NZ) and four
of its top officials to face contempt of court charges for not
adhering to an earlier ruling that banned sales and advertising of
all Fonterra milk products.
The
district court in Gampaha earlier had banned the sale and advertising
of all Fonterra milk products for two weeks, following a complaint by
a health sector trade union that the company's marketing was
misleading.
It
obtained the court ban because Fonterra products suspected of being
contaminated with the toxic agricultural chemical dicyandiamide (DCD)
were still on the market despite an order from the health ministry to
recall them.
Lawyers
representing the health sector trade union said despite the court
ban, Fonterra continued to distribute its milk powder products to
retailers on Saturday and distributed leaflets on Monday saying its
products were still fit for human consumption.
"They
(Fonterra) are in contempt as they have not followed the court
order," Upul Jayasuriya, who appeared in court on behalf of the
health sector trade union, told Reuters. "The judge has issued
summons on Fonterra and its four directors for August 23."
Officials
from Fonterra Brands Lanka Pvt Ltd were not available for comment.
The
island nation's health ministry has said tests by Sri Lanka's
Industrial Technology Institute (ITI) found DCD in some Fonterra milk
powders and it had ordered their recall.
Fonterra
disputed the accuracy of the testing, but on Thursday told Reuters it
had recalled two batches of Anchor-branded product in accordance with
the ministry directive.
The
Sri Lankan case follows a major global food scare involving New
Zealand's Fonterra, the world's biggest dairy exporter, which said on
August 3 some of its products could contain a bacteria that can cause
botulism.
Potentially
tainted products have been taken off shelves from China to Saudi
Arabia while other countries took measures to restrict imports.
On
Monday, the health ministry said it had decided to release a batch of
milk powder made by companies including Fonterra after being held by
ports on suspected DCD contamination followed by fresh ITI tests came
negative.
Sri
Lanka to test all milk powder for chemical in Fonterra scare
A
Sri Lanka state institute said it would test all milk powder in the
market after finding a toxic chemical in products sold by New
Zealand's Fonterra, while a nationalist party called for the closure
of Fonterra's local subsidiary.
22
August, 2013
The
Industrial Technology Institute (ITI) found the agricultural chemical
dicyandiamide (DCD) in two batches of milk powder it tested - one of
Anchor full-cream and another of the Anchor 1+ brand for young
children - manufactured between October and December 2012, ITI Chief
Executive G.A.S. Premakumara said.
"Now
we have decided to test all the milk powder in the market including
other Fonterra products," Premakumara told reporters on
Thursday.
"It
is unfair to say all Fonterra products are DCD contaminated. We did
the same test in some Fonterra products that were manufactured after
June 1, and we found no DCD in those products," he said.
Milk
production is a political issue in Sri Lanka, and the government is
working to increase domestic production and reduce imports. Farmers,
many of whom own dairy cows, are President Rajapaksa's main voter
base.
Tests
so far on locally produced milk products have found no DCD.
Fonterra
has disputed the accuracy of the ITI testing, but the local company
Fonterra Brands Lanka last week told Reuters it had recalled two
batches of Anchor-branded products in accordance with the health
ministry directive.
Fonterra
and its top officials may face charges of contempt of court after a
Sri Lankan health sector trade union obtained a court order banning
sales, distribution, and advertisement of its milk products.
NATIONALISTS
PROTEST
More
than 100 members of the National Freedom Front, a hardline
nationalist political party in President Mahinda Rajapaksa's ruling
coalition, protested on Thursday in front of Fonterra Brand Lanka's
head office, 30 km north of Colombo, demanding a ban on all Fonterra
products in Sri Lanka.
As
riot police watched, they held up banners saying, "We should
make our own milk powder", and "Ban toxic yoghourt
advertisement immediately", while carrying a coffin with large
pictures of all Fonterra brands.
Sri
Lankan opposition follows a global food scare after Fonterra said
earlier this month that some of its products could contain a bacteria
that can cause botulism. Its products have been removed from shelves
from China to Saudi Arabia, while other countries have restricted
imports.
"Stop
filling our children's tummies with toxic milk," Mohammed
Musammil, the spokesman of National Freedom Front, told the
protestors.
"It
is not a difficult task to close down Fonterra for a country which
eradicated terrorism. We request all the people to unite to send
Fonterra home in the same way they united to end the terrorism."
The
Sri Lankan government has made efforts in recent years to popularize
fresh milk to boost local production and achieve self sufficiency,
helping reduce imports of dairy products by 12.3 percent to $307.3
million in 2012.
Last
year, the government ordered state-owned milk company, Milco to buy
all the farmers' unsold milk to improve self-sufficiency.
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