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.
Fyffes, the global produce supplier, is in the spotlight over union claims of worker abuse on plantations in Central America....
Mark Price, the outgoing managing director of UK grocer Waitrose, has been named the country's new trade minister....
Last autumn, a US trade group said it would look to develop a voluntary regulatory compliance and certification programme for the term 'natural', with an eye on releasing the standard in the first hal...
- What are the implications of Brexit for UK food?
- Mondelez results and outlook - 7 things to learn
- Richelieu Foods CEO eyes growth - interview
- Foodservice focus: McDonald's/Five Guys/Starbucks
- PepsiCo 2015 results, 2016 outlook - takeaways
- PepsiCo's Nooyi: "macro challenges" will continue
- Private-equity firm HKW acquires Panos Brands
- WWF launches food security platform
- PepsiCo forecasts dip in sales growth in 2016
- Russia draws up plans for tax on palm oil