Friday, April 26, 2024

Council probe over China

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Fonterra’s management and governance had a “please explain” from the Fonterra Shareholders Council last month when it was revealed some milk products were still banned from entering China following last year’s the botulinum scare.
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Whey protein and base powder for infant formula were still being excluded by Chinese officials eight months after the scare despite assurances it had been a false alarm and significant diplomacy from the New Zealand Government and Fonterra officials.

Council chairman Ian Brown said it had sought more clarification from the co-op and had been filled in on the details of Fonterra’s export status to China.

The ban relates to products that amount to about 3% of the Fonterra’s total exports.

Brown said the council was satisfied with the update and accepted it was likely to have been given the full explanation in Fonterra’s next report on the follow up from the scare due in July.

“It’s one of the challenges for Fonterra and for us,” he said.

“How far into the business do we go with monitoring and reporting? We’ve got a planned timeline for reporting on the matter and our next review period is in July.”

Brown said he wasn’t concerned there were other details Fonterra may not yet have reported on. There was a good level of communication between the board and council as well as committees and individuals. He also regularly met with Fonterra chairman John Wilson.

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