Fonterra Refutes Sri Lanka Ban On Its Products

WELLINGTON, New Zealand--Fonterra Co-operative Group Ltd. (FCG.NZ) Monday said it refutes a temporary injunction to prevent it from selling products in Sri Lanka.

According to Fonterra, the injunction prevents Fonterra from selling and advertising its products in Sri Lanka for the next 14 days.

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.

A Sri Lankan court Friday reportedly ordered the two-week suspension pending investigations into allegations of contamination related to the bacteria and a toxic chemical called dicyandiamide or DCD.

In January, Fonterra acknowledged that traces of DCD had been found in milk powder late last year. The chemical has been banned for use in fertilizers.

Johan Priem, Fonterra's managing director for Asia Pacific, Middle East and Africa said, "We strongly refute the allegations on which this injunction has been made. Our independent testing has found no traces of DCD in any Fonterra branded products in Sri Lanka and no affected whey protein concentrate or products containing it have been sent to the country."

Write to Rebecca Howard at [e-mail]

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