2013 Fonterra recall

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In 2013, a wide-scale recall of products sold by dairy producer Fonterra was announced after suspected botulism-causing bacteria were found during safety tests. The contaminated whey products had been sold to third parties who use it to produce infant formula and sports drinks. Approximately 1,000 tonnes of consumer product was affected by the recall across seven countries, but no cases of sickened consumers were reported. China, which imports most of its powdered milk from New Zealand, instituted a temporary ban on the import of the ingredient from New Zealand.

Contents

The scandal resulted in the resignation of Fonterra's head of its milk business division, Gary Romano. [1]

The bacteria were ultimately found not to be a botulism-causing strain.

Background

Based in New Zealand, Fonterra Cooperative Group is the world's fourth largest producer of dairy products, with a turnover of nearly NZ$ 20 billion (US$15.7 billion). The company was formed in 2001 following the merger of the country's two largest dairy cooperatives, and controls 95% of New Zealand's dairy market.

New Zealand produces 15 million tonnes of dairy products annually, of which 5% is consumed domestically and 95% is exported to other countries. Dairy exports contribute NZ$11 billion directly to the New Zealand economy, or around 7% of the country's gross domestic profit. Because of New Zealand's excellent safety history, consumers are willing to pay a premium for its dairy products. [2] Chinese manufacturers in particular are major buyers of Fonterra products as many citizens have concerns about the safety of domestic dairy products in the wake of the 2008 Chinese milk scandal, in which melamine sickened thousands of people. [3]

Botulism is a rare disease caused by Clostridium botulinum bacteria. [3] A small number of the bacteria can cause severe poisoning leading to respiratory and muscular problems in adults. [3] [4] In infants, the toxin also affects the intestinal system. [4]

Recall

On 3 August 2013, the Ministry for Primary Industries announced a recall of products sold by Fonterra. The contaminated products originated with three batches of whey protein concentrate weighing 38 metric tons (42 tons) produced in May 2012. [3] A problem was first noticed by Fonterra in March 2013 when testing suggested the possible presence of Clostridium , a sometimes-dangerous class of bacteria which is often harmless. [2] On 31 July 2013, tests revealed signs of Clostridium botulinum , leading to the recall. The contamination was blamed on unsterilised pipes used to move the whey during production. [3]

The whey had been sold to third-party manufacturers who used it to produce infant formula, protein drinks, sports drinks, and other beverages; it had been mixed with other ingredients to produce an estimated 1,000 tons of consumer products by the time of the recall. No fresh dairy products were affected by the contaminated pipes. [2]

Manufacturers in Australia, China, Malaysia, New Zealand, Saudi Arabia, Thailand, and Vietnam were affected by the recall, but the specific companies affected were not identified by the Ministry of Primary Industries. [3] A Chinese consumer watchdog group said four domestic manufacturers – Dumex Baby Food Company, two subsidiaries of beverage manufacturer Wahaha Group, and Shanghai Sugar, Tobacco and Alcohol – had potentially imported contaminated products. Fonterra said that Coca-Cola's Chinese subsidiary was also affected. [4] Coca-Cola said 4,775 out of 4,800 kilograms (10,600 lb) of contaminated whey had been quarantined before being used. The remainder was used in a single batch of Minute Maid Pulpy Milk, which was recalled to reassure consumers even though it posed no health risk since the drink was heat treated to kill bacteria. [5]

Internationally, eight companies were affected – three food companies, two beverage companies, and three animal-feed producers. Danone Dumex Malaysia said tests on its products did not indicate any contamination, but announced a precautionary recall of four batches of infant formula. [5] One affected product, Karicare formula made by Nutricia, was sold directly to consumers by Fonterra in New Zealand. [3] On 9 August, it was revealed that Fonterra had donated a 12 kg (26 lb) bag of the affected whey concentrate to Palmerston North Girls' High School, in the eponymous New Zealand city, for use in a science project back in February 2013. Around 25 students drank drinks made with the concentrate in April, but no ill effects were reported. [6]

Fonterra CEO Theo Spierings promised swift action to ensure that potentially dangerous products were not used by consumers. Since most of the consumer products affected are not manufactured by Fonterra, individual manufacturers are responsible for co-ordinating the recall efforts in their areas. Spierings travelled to China to deal with the fallout from the botulism scare. [3]

The Government reaction involved five ministers, with the Economic Development Minister Steven Joyce, known as the "Minister of Everything" or "Mr Fixit", in charge (he is also responsible for investigating the Novopay debacle). [7] [8] A Government inquiry is expected to be announced on Monday 12 August. [9]

Reaction

China

China's General Administration of Quality Supervision, Inspection and Quarantine ordered importers to recall any potentially infected products and demanded "that New Zealand take immediate measures to prevent problem products harming the health of Chinese consumers." [3] On 4 August, China temporarily blocked the import of all milk powder products from New Zealand. New Zealand's trade minister, Tim Groser, agreed with the decision calling it "absolutely appropriate". [10] China imports US$1.9 billion of milk powder a year, 90 percent of which originates in New Zealand. Economists said an extended ban could cause a shortage of infant formula and other dairy products in China. [4]

Thailand

Thailand ordered a recall of all Fonterra products imported since May. [4] Reports by the RIA Novosti news agency indicated that Russia, which was not part of the official recall, also halted the import and sale of Fonterra products. Fonterra called the reports "unconfirmed". [5] The company said that all affected batches of Nutricia are believed to have been secured before reaching consumers' hands. [2] Groser said the government had serious questions about how the contamination occurred and why it went undetected for so long. [5]

Sri Lanka

Health ministry of Sri Lanka issued an island-wide recall of all suspected milk stocks which were imported from New Zealand including Anchor. [11] The Health Services Director General of Sri Lanka announced contaminated milk products ban under Food Act Number 26 of 1980 using his powers in consultation with the Food Advisory Committee. [12] Also, on 8 August, the Court of Appeal of Sri Lanka issued an Interim Order compelling the Consumer Affairs Authority (CAA) to prevent Fonterra Brands Lanka (Pvt) Ltd., from publishing any advertisements. [13] No cases of consumers being sickened have been reported. [2] A statement by New Zealand prime minister John Key expressed doubt about Sri Lanka's testing methods (for DCD). [14]

France

French food company Danone, which owns the Nutricia brand, was said to be seeking upwards of €300 million in damages following the scare, despite Fonterra only setting aside $NZ14 million. [15]

Aftermath

Further testing showed that the bacteria found were Clostridium sporogenes , which do not produce botulism toxins. There was no actual health risk, and the crisis was a false alarm. [16]

The Ministry for Primary Industries brought four charges against Fonterra under the Animal Products Act concerning its risk-management programme and delayed notification of problems. Fonterra pleaded guilty to all charges and was fined NZ$300,000 in April 2014. [17] A government investigation into the crisis and three other inquiries are continuing. [18]

See also

Related Research Articles

Dairy product Food product made from milk

Dairy products or milk products, also known as lacticinia, are food products made from milk. The most common dairy animals are cow, water buffalo, nanny goat, and ewe. Dairy products include common grocery store food items in the Western world such as yogurt, cheese and butter. A facility that produces dairy products is known as a dairy. Dairy products are consumed worldwide to varying degrees. Some people avoid some or all dairy products either because of lactose intolerance, veganism, or other health reasons or beliefs.

<span class="mw-page-title-main">Botulism</span> Human and animal disease

Botulism is a rare and potentially fatal illness caused by a toxin produced by the bacterium Clostridium botulinum. The disease begins with weakness, blurred vision, feeling tired, and trouble speaking. This may then be followed by weakness of the arms, chest muscles, and legs. Vomiting, swelling of the abdomen, and diarrhea may also occur. The disease does not usually affect consciousness or cause a fever.

<span class="mw-page-title-main">Danone</span> French multinational food corporation

Danone S.A. is a Spanish-French multinational food-products corporation based in Paris. It was founded in Barcelona, Spain. It is listed on Euronext Paris where it is a component of the CAC 40 stock market index. Some of the company's products are branded Dannon in the United States.

<span class="mw-page-title-main">Fonterra</span> New Zealand multinational dairy co-operative

Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy co-operative owned by around 10,500 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ $20 billion, making it New Zealand's largest company. It is the fourth-largest dairy company in the world as of 2019, as well as the largest in the Southern Hemisphere.

<span class="mw-page-title-main">Powdered milk</span> Dehydrated milk product

Powdered milk, also called milk powder, dried milk, or dry milk, is a manufactured dairy product made by evaporating milk to dryness. One purpose of drying milk is to preserve it; milk powder has a far longer shelf life than liquid milk and does not need to be refrigerated, due to its low moisture content. Another purpose is to reduce its bulk for the economy of transportation. Powdered milk and dairy products include such items as dry whole milk, nonfat (skimmed) dry milk, dry buttermilk, dry whey products and dry dairy blends. Many exported dairy products conform to standards laid out in Codex Alimentarius.

Anchor (brand)

Anchor is a brand of dairy products that was founded in New Zealand in 1886, and is one of the key brands owned by the New Zealand based international exporter Fonterra Co-operative Group. In Malaysia, Singapore and Taiwan, Fonterra uses the Fernleaf brand instead of Anchor.

Product recall Request to return a product after the discovery of safety issues or product defects

A product recall is a request from a manufacturer to return a product after the discovery of safety issues or product defects that might endanger the consumer or put the maker/seller at risk of legal action.

White Rabbit (candy) Chinese brand of milk candy

White Rabbit Creamy Candy is a brand of milk candy manufactured by Shanghai Guan Sheng Yuan Food, Ltd., in China. It is an iconic cultural brand and has been in production since 1943.

A2 milk Type of cows milk

A2 milk is a variety of cows' milk that mostly lacks a form of β-casein proteins called A1, and instead has mostly the A2 form. Cows' milk like this was brought to market by The a2 Milk Company and is sold mostly in Australia, New Zealand, China, and the United States. It was sold in the United Kingdom between 2012 and 2019. Non-cow milk, including that of humans, sheep, goats, donkeys, yaks, camels, buffalo, and others, also contain mostly A2 β-casein, and so the term "A2 milk" is also used in that context.

Nutricia

Nutricia is a Danone brand that specialises in therapeutic food and infant formula, including medical nutrition for babies with specific needs.

In China, the adulteration and contamination of several food and feed ingredients with inexpensive melamine and other compounds, such as cyanuric acid, ammeline and ammelide, are common practice. These adulterants can be used to inflate the apparent protein content of products, so that inexpensive ingredients can pass for more expensive, concentrated proteins. Melamine by itself has not been thought to be very toxic to animals or humans except possibly in very high concentrations, but the combination of melamine and cyanuric acid has been implicated in kidney failure. Reports that cyanuric acid may be an independently and potentially widely used adulterant in China have heightened concerns for both animal and human health.

Westland Milk Products

Westland Milk Products is a dairy company based in Hokitika, New Zealand. It has been owned by Chinese dairy company Yili Group since 2019. It is the third-equal largest dairy processor in New Zealand with a 3.4% market share.

Sanlu Group CO., Ltd. (SJZSGCZ) was a state-owned Chinese dairy products company based in Xinhua District, Shijiazhuang, the capital city of Hebei. It produced one of the oldest and most popular brands of infant formula in China. New Zealand's Fonterra owned 43% of Sanlu.

<span class="mw-page-title-main">2008 Chinese milk scandal</span> Food safety crisis

The 2008 Chinese milk scandal was a significant food safety incident in China. The scandal involved Sanlu Group's milk and infant formula along with other food materials and components being adulterated with the chemical melamine, which resulted in kidney stones and other kidney damage in infants. The chemical was used to increase the nitrogen content of diluted milk, giving it the appearance of higher protein content in order to pass quality control testing. 300,000 affected children were identified, among which 54,000 were hospitalized, according to the latest report in January 2009. The deaths of six babies were officially concluded to be related to the contaminated milk.

Guangdong Yashili Group Co., Ltd. is a leading privately owned infant formula and soymilk products company in China. Based in Chaoan in the Chaozhou region of Guangdong province, China and incorporated in the Cayman Islands. The company also has a Hong Kong-listed entity Yashili International Holdings Limited.

This timeline of the 2008 Chinese milk scandal documents how events related to the Chinese dairy products contamination by melamine unfolded. Complaints about kidney problems traced back to a brand of infant formula, subsequent discoveries of melamine contamination of liquid milk, and exported powdered milk of processed food products. The scandal decimated Chinese dairy exports, and re-exposed long-standing concerns about food security, corruption, lack of political checks and balances. Though the scandal came to attention in 2008, its roots can be traced back to events prior to 2008.

<span class="mw-page-title-main">Synlait</span>

Synlait Milk is a New Zealand milk nutrition company with several locations, both in New Zealand and overseas. Its home base is in Dunsandel, Canterbury. It has additional manufacturing sites in Auckland and Pokeno, an administration office in Christchurch, a Research and Development Centre in Palmerston North, and the Talbot Forest cheese factory in Temuka. It also owns Dairyworks which is a cheese, yoghurt and butter manufacturer based in Christchurch. Overseas, Synlait has an office in Beijing, and in Shanghai. The company manufactures infant formula, liquid dairy and ingredient and nutritional milk powders.

The a2 Milk Company New Zealand dairy company

The a2 Milk Company Limited is a dual listed NZX and ASX 50 public listed company that commercialises intellectual property relating to A1 protein-free milk that is sold under the a2 and a2 Milk brands, as well as the milk and related products such as infant formula.

References

  1. ↑ Gyles Beckford (14 August 2013). "Fonterra's milk products chief resigns after botulism scare". Reuters.
  2. 1 2 3 4 5 "New Zealand botulism scare triggers mass global recall". Fox News Channel. Associated Press. 3 August 2013. Retrieved 4 August 2013.
  3. 1 2 3 4 5 6 7 8 9 Gerry Mullany (3 August 2013). "Botulism Threat Found in Infant Formula Ingredients". The New York Times. Retrieved 4 August 2013.
  4. 1 2 3 4 5 "China Bans Milk Powder From New Zealand Over Botulism Fears". The New York Times. Reuters. 4 August 2013. Retrieved 4 August 2013.
  5. 1 2 3 4 Rebecca Howard (4 August 2013). "Companies Recall Products After Fonterra Warning". The Wall Street Journal. Retrieved 4 August 2013.
  6. ↑ "Students who drank whey 'not at risk'". Radio New Zealand. 9 August 2013. Retrieved 11 August 2013.
  7. ↑ Espiner, Colin (7 August 2013). "Mr Fixit in charge of dairy scare". Stuff/Fairfax. Archived from the original on 11 August 2013. Retrieved 11 August 2013.
  8. ↑ "Fonterra apologises but Govt not satisfied". Stuff/Fairfax. 9 August 2013. Retrieved 11 August 2013.
  9. ↑ Small, Vernon (10 August 2013). "Dairy scare questions trouble Govt". Stuff/Fairfax. Retrieved 11 August 2013.
  10. ↑ "China bans New Zealand milk powder imports". Australia Network News. 4 August 2013. Retrieved 16 August 2013.
  11. ↑ Nadira Gunatilleke (8 August 2013). "STRICTLY NO MILK POWDER ADVERTS | Daily News Online : Sri Lanka's National News". Dailynews.lk. Archived from the original on 9 August 2013. Retrieved 16 August 2013.
  12. ↑ "Anchor, Maliban and Diamond milk powder off the shelves | Breaking News". Dailymirror.lk. 7 August 2013. Retrieved 16 August 2013.
  13. ↑ "CA bars Fonterra from advertising products 100% perfect | Breaking News". Dailymirror.lk. 8 August 2013. Retrieved 16 August 2013.
  14. ↑ Vance, Andrea (11 August 2013). "Fonterra rubbishes Sri Lankas flawed testing". Stuff/Fairfax. Retrieved 11 August 2013.
  15. ↑ Fonterra in talks with Nutricia owners Archived 4 October 2013 at the Wayback Machine . 3 News NZ. 2 October 2013.
  16. ↑ Grey, Jamie (28 August 2013). "Fonterra botulism crisis was false alarm". The New Zealand Herald.
  17. ↑ Rutherford, Hamish (4 April 2014). "Fonterra fined $300k for botulism scare".
  18. ↑ "Investigations continue into Fonterra botulism scare". 3 News. 12 May 2014. Archived from the original on 13 May 2014. Retrieved 12 May 2014.
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