WELLINGTON, New Zealand--A global recall of some Fonterra Co-Operative Group Ltd. (FCG.NZ) milk products earlier this year--triggering the biggest food safety scare in New Zealand history--wasn't the result of regulatory failure, a government report has found.
Fonterra, the world's largest dairy exporter, in August said three batches of whey-protein concentrate might contain harmful bacteria. The news led to recalls in China, New Zealand and elsewhere.
Subsequent testing indicated that the organism wasn't harmful. But the fallout from the scare harmed the country's hard-won reputation as a safe supplier of food. Dairy represents around a third of exports from New Zealand, nicknamed the Saudi Arabia of milk.
"New Zealand's food safety regulatory model is consistent with international principles," Food Safety Minister Nikki Kaye said following the release of the first stage of a government report into the incident. Another report will look into how the incident came about and was handled.
The recall was particularly damaging in China, where growing demand for dairy products has seen the country become one of New Zealand's biggest trade partners in recent years. Some restrictions on New Zealand milk imports remain in place in China and Russia, Primary Industries Minister Nathan Guy said.
The New Zealand government said Wednesday it plans to boost the number of staff in emerging markets such as China to offset official concerns. It will also establish a center for food safety science and a food safety and assurance advisory council.
"We have learned critical lessons from what has been a difficult experience, and the findings of this forward-looking review are an important step in our own reputational rebuild," Fonterra Chief Executive Theo Spierings said Wednesday.
Write to Rebecca Howard at email@example.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 10, 2013 21:55 ET (02:55 GMT)Copyright (c) 2013 Dow Jones & Company, Inc.
|New Zealand Milks China's Taste for Dairy (2014/2/3)|
|NetSuite Commits To The Channel In New Zealand As Cloud Adoption Increases ()|
|ICBC New Zealand Subsidiary to Focus on Import, Export Companies -- Update (2013/11/19)|
|Hertz Introduces BMWs To New Zealand Fleet (2013/8/12)|
|ICBC Subsidiary Becomes Registered Bank in New Zealand ()|
|Hertz Wins Three Year Contract To Supply Car Rental Services To New Zealand Government (2014/4/11)|
|America’s Cup Challenger Emirates Team New Zealand Revolutionizes Boat Design with Dell’s End to End Solutions (2013/9/26)|
|Sprint Wins Top Honor for Communications Accessibility for All; Sprint CapTel Call Center in New Zealand Earns Country’s Telecommunications and Internet Award ()|
|OceanaGold provides update for Macraes Goldfield in New Zealand and announces Full Year 2014 Production Guidance and Hedging for 2014 and 2015 ()|
|Reading International Appoints Director of Real Estate for Australia and New Zealand (2014/2/26)|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.