5 Jul 2013

Fonterra contacted by Chinese price fixing inquiry authorities

8:22 am on 5 July 2013

Fonterra says it has been contacted by Chinese authorities as part of a broad-range investigation of consumer dairy products in China.

The National Development and Reform Commission is reviewing a range of consumer businesses in the dairy industry in China.

Fonterra operates a small consumer business there.

The Chinese government has confirmed it's investigating price fixing by some foreign manufacturers of milk powder for infants because it suspects some well known brands may be taking advantage of a tainted milk formula scandal five years ago.

However, some analysts say the investigation may be part of a broader plan to boost consumption of the local product.