Member Alerts
Update on New Zealand Situation Memorandum
To: USDEC Members
Fm: Matt McKnight (mmckight@usdec.org, 703-469-2368) and Mitch Bowling (mbowling@usdec.org, 703-469-2362), Market Access and Regulatory Affairs Margaret Speich, Communications (mspeich@usdec.org, 703-469-2363) and Mark O'Keefe (mokeefe@usdec.org, 703-528-4812)
USDEC staff is following a developing story related to some Fonterra dairy products that were allegedly contaminated with bacteria that can cause botulism. The situation is isolated to Fonterra products and no U.S. dairy products are involved.
Background
On Friday, Aug. 2, Fonterra Co-operative Group issued a food safety warning to several customers, including an infant formula manufacturer, over concerns that whey protein concentrate (80-percent protein) contaminated with Clostridium botulinum may have entered the supply chain. Clostridium botulinum is a bacteria which, under the right conditions, can cause botulism, a potentially fatal disease.
The contamination affected three batches (approximately 38 tons) of WPC-80, which Fonterra says were sold to eight of its customers in Australia, China, Malaysia, Saudi Arabia, Thailand and Vietnam. Some customers received the WPC as base product and others received it as finished product manufactured by Fonterra using the affected WPC-80 as an ingredient. Of these customers, three are food companies, two are beverage companies and three are companies that manufacture animal stock feed. There have been no reports of any illness linked to the consumption of the affected whey protein.
Fonterra and the New Zealand government have isolated the affected product, have taken steps to remove it from the supply chain, and have identified the cause of the problem to an unsanitary pipe that wasn't correctly sterilized.
Initial reports indicated China had banned all milk powder from New Zealand, however, official statements now limit bans to whey powder and dairy base powder. According to Fonterra: "Chinese authorities have temporarily suspended importation of whey powder and dairy base powder (a whey- based dairy ingredient used in the manufacture of infant formula) produced by Fonterra, or produced in Australia using Fonterra's whey protein powder as an ingredient (including whey protein concentrate). China has also increased inspection and supervision at the border for New Zealand dairy products, and indicated extra testing may be required."
According to New Zealand's Ministry of Primary Industries (MPI), "Russia appears to have put a temporary ban on all New Zealand dairy exports. MPI is focusing on getting further clarity on this." Various media also have reported bans of New Zealand product by Vietnam, Thailand and Russia.
USDEC Action
USDEC has been closely monitoring the situation:
- We've been in contact with our overseas office representatives.
- We also have been addressing various questions from several USDEC member exporter- suppliers.
- We ask that members keep us apprised of inquiries from customers, media, government, etc. they may receive so that we can work together on a coordinated response if needed.
We will continue to update members as the situation warrants. If you should have any technical questions, please contact Matt and Mitch (see contact info above). For any questions on media, please contact Margaret or Mark.
Reference Information
For continued updates, we recommend these official sources:
- New Zealand Ministry of Primary Industries Updates: http://www.mpi.govt.nz/food/food- safety/whey-protein-contamination
- Fonterra: http://www.fonterra.com/global/en
Sample News Coverage
As you are probably aware, there is a great deal of global news coverage on this incident, and the coverage appears to be focused on Fonterra. Because the story is evolving, there has been conflicting information in some articles.
- Reuters (8/5 article): Fonterra CEO apologizes, sees China dairy curbs lifted within days
- Bloomberg (8/5 article): Botulism Scare Halts N.Z. Milk-Powder Sales to China, Russia
- South China Morning Post (8/5 article): Baby milk formula recalled amid botulism scare
- Interactive Investor (8/5 article): Nestle says none of its products affected by Fonterra recall
- Reuters via Globe and Mail (8/5 article): New Zealand dollar skids after contaminated dairyscare