Fonterra pulls ‘DCD’ milk powder in Sri Lanka, disputes test

New Zealand-based dairy giant Fonterra Co-operative said on Sunday it had withdrawn milk powder under orders from the Sri Lankan authorities for showing traces of the toxic agricultural chemical dicyandiamide (DCD), although it disputed the accuracy of the testing.

It said two batches of milk powder had been removed from shops last month after Sri Lanka’s Ministry of Health had said they tested positive for DCD, a nitrate inhibitor used in fertilisers. Sri Lanka also imposed a ban on advertising by Fonterra’s Anchor powder brand.

But Fonterra’s chief executive said the product was clean and safe and it was contesting the Sri Lankan results and the ban.

“We are definitely fighting it, because we have clear certificates – DCD-free, stamped, when it was exported, when it was imported – all clear,” Theo Spierings told Television New Zealand.

He said Fonterra’s own testing and that of independent bodies had shown the milk powder was safe.

The Sri Lankan recall follows last week’s withdrawal by Fonterra and several of its customers of infant formula, sports drinks, and animal feed in nine countries because of fears of contamination of a whey ingredient with bacteria that can cause botulism.

Spierings said Sri Lanka’s action could be related to the price of dairy products there. Sri Lanka is the fifth biggest importer of Fonterra milk powder.