Blog: Repurcussions of botulism scare continue to impact Fonterra
Hannah Abdulla | 27 March 2014
It's been a tough last year for Fonterra and the repurcussions don't appear to have stopped. The firm reported a 53% loss in profits for the first six months of its financial year yesterday attributing the losses to margins being squeezed by higher commodity prices.
Following the legal tie-up with Danone over last year's Botulism scare, Fonterra has set aside NZ$11m (US$9.5m) in expected legal fees. Earlier this month Fonterra accepted four counts of food safety violations related to the incident which saw Danone axe its supply contract with the firm.
According to Danone, the recall of the concentrated whey powder last August resulted in lost sales of EUR350m (US$476m).
Fonterra said in the report it was "working through the details of Danone's claim" and would "vigorously defend its position".
The $11m it has provided it says represents "the maximum contractual liability to Danone", though it is lower than the NZ$14m provision it originally announced at the end of last year.
Hanoimilk, the Vietnamese dairy group, continued to witness declining revenues in the third quarter of the year but lower costs saw profits strengthen....
Tesco has reported a massive 92% drop in first half profits as the accounting fiasco continues to widen....
A conference being held in London today is taking on the ambitious topic of agricultural technology and specifically will be looking at the implementation of the UK government's Agricultural Technolog...
As the importance of health has grow in consumers' minds, frozen food has been left out in the cold. But two major manufacturers in the US are looking to heat up the sector by claiming frozen food mea...
Mead Johnson, the US-based infant nutrition group, has booked an increase in third quarter sales and earnings but a narrow miss of consensus expectations caused shares to slide in New York today (23 O...
Some analysts might be breathing a sigh of relief at news Danone is rejecting speculation it is about to swoop for infant-formula giant Mead Johnson. ...
- SIAL 2014: Greek yoghurt firm Fage targets Europe
- Why Nestle is relaxed about the China "drag"
- Focus: Will Danone return to growth in dairy?
- On the money: Spreads, ice cream top Unilever woes
- SIAL: French firm Michel et Augustin to enter US
- SIAL 2014: Premier in talks over US manufacturing
- Symington's acquires Tanfield Foods
- Kellogg, Nestle slammed for "chaotic" salt policy
- Heinz silent over Polish factory expansion talk
- Danone "eyes acquisition of Mead Johnson"