4 Sep 2013

Fonterra advertising ban in Sri Lanka extended

1:12 pm on 4 September 2013

The Court of Appeal in Sri Lanka has extended the ban on Fonterra advertising in the country.

Reports from there say the injunction stops Fonterra advertising its products as being 100% healthy - until at least 20 September.

Fonterra's operations in the south Asian country have been rocked in recent weeks with protesters targeting its facilities and product recalls being ordered, over fears its milk powder is laced with the agrichemical DCD.

At the same time, Sri Lankan media are reporting severe shortages of locally produced milk products, as consumers have stopped buying Fonterra products. They say local producers now can't meet demand.

At the weekend Foreign Affairs Minister Murray McCully and Fonterra chairman John Wilson were in Sri Lanka to seek government assurances of a more stable environment for the dairy company to carry out its business.