28 Aug 2013

Fonterra open for business again in Sri Lanka

5:37 pm on 28 August 2013

Fonterra has resumed its consumer operations in Sri Lanka, saying it believes it is safe for its staff there now.

A court-ordered ban on the sale and advertising of Fonterra products, imposed after claims the agricultural chemical dicyandiamide (DCD) had been detected in milk powder, was lifted on Saturday.

Fonterra suspended its operations and stood down its 755 staff in Sri Lanka until further notice on Friday, after a nationalist group protested outside one of its plants about the alleged contamination.

Sri Lanka's consul in Wellington, Aruna Abeygoonesekera, said the court could not find sufficient evidence Fonterra had misled consumers.

Chief executive Theo Spierings says following a thorough assessment by management they have decided there is no risk to Fonterra staff and the situation has now stabilised.

He says Fonterra will continue to work with Sri Lankan and New Zealand government authorities on long-term, sustainable support its Sri Lankan customers, communities and the local dairy sector.