New Zealand dairy giant Fonterra announced on Saturday that tests of some ingredients used in infant formula and sports drinks have turned up a type of bacteria that could cause botulism, and customers were urgently checking their supply chains.
The company is the world’s fourth-largest dairy company, with annual revenues of about US$16 billion (HK124 billion).
The news comes as a blow to New Zealand’s dairy industry, which powers the country’s economy. New Zealand exports about 95 per cent of its milk.
Consumers in China and elsewhere are willing to pay a big premium for New Zealand infant formula because the country has a clean and healthy reputation. Chinese consumers have a special interest after tainted local milk formula killed six babies in 2008.
The Centers for Disease Control describes botulism as a rare but sometimes fatal paralytic illness caused by a nerve toxin.
Fonterra said it has told eight of its customers of the problem, which dates back more than a year, and they were investigating whether any of the affected product is in their supply chains. Fonterra said those companies will initiate any consumer product recalls.