Blog: Hannah AbdullaRepurcussions 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.

Sectors: Dairy

Companies: Danone, Fonterra

BLOG

Will Amazon Go be retail "game-changer"?

Ask any FMCG executive to list the trends shaking up the sector and digital and e-commerce will be pretty high on the list. Drill down into that and Amazon will be one of the subjects in the digital s...

NEWS

South Africa edible oil firms raided

Five edible oil companies operating in South Africa, including Singapore-based agri-food giant Wilmar International, have been raided as competition officials investigate claims of price-fixing....

BLOG

UK food producers call for "best possible single market access" post-Brexit

Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...

BLOG

Greenpeace trains sights on Sainsbury's over John West tuna

Greenpeace's long-running campaign against UK tuna brand John West, owned by seafood giant Thai Union, is now directing its fire against Sainsbury's....

just-food homepage



Forgot your password?