28 Aug 2013

Fonterra confident of return to Sri Lankan market

12:18 pm on 28 August 2013

Fonterra says it's confident it will regain its place in the Sri Lankan market, and the dairy co-operative says it is also trying to assure the Bangladesh authorities that recent imports of powdered milk are safe.

A court-ordered ban on the sale and advertising of Fonterra products in Sri Lanka was lifted on Saturday.

Fonterra also suspended its operations in Sri Lanka last week and stood down its 750 staff there until further notice after a protest outside one of its plants about the alleged contamination.

Chair John Wilson says while the suspension is still in place, he's confident operations will return to normal soon.

Meanwhile, customs officials in the Bangladesh port city of Chittagong are holding more than 600 tonnes of powdered milk until mandatory chemical tests show the product is safe.