Fonterra Places 2 Senior Managers on Leave After Food Safety Scare

   By Rebecca Howard 
 

WELLINGTON, New Zealand--Fonterra Co-operative Group Ltd. (FCG.NZ) said Friday that two senior managers have been placed on leave, effective immediately.

The move comes after Fonterra earlier this month warned that three batches of one of its dairy products, whey protein concentrate, might contain harmful bacteria, which led countries like China and Russia to ban some of its milk products.

Both the New Zealand government and the company are conducting investigations to determine what happened and to evaluate how the situation was handled.

"We are moving quickly and establishing key facts about what has happened and, as they emerge, we are taking appropriate action," Fonterra Chief Executive Theo Spierings said Friday. He did not name the two managers. The move follows the resignation this week of Gary Romano, its managing director of New Zealand Milk Products.

Fonterra produced the whey protein concentrate in New Zealand for use in infant formula and other products in May 2012. The issue wasn't identified until March and intensive testing was then carried out to isolate the specific bacteria. On July 31 tests indicated that the potential presence of Clostridium botulinum, which can cause botulism. The announcement on Aug. 2 led to product recalls in various countries. There were no reported cases of illness.

Write to Rebecca Howard at [e-mail]