Fonterra has moved to reassure customers that its products are melamine free after one of its suppliers warned that the industrial chemical had been found in an iron supplement it produces.
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German-based Budenheim advised Fonterra that an iron supplement it supplies to food companies around the world had tested positive for melamine.
Fonterra uses the supplement in 12 fortified whole milk powder products.

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The New Zealand dairy giant said that it immediately stopped all production using the supplement.
As a precautionary measure, Fonterra said it had undertaken “extensive” retesting of the affected batches of Fonterra’s milk powder products.
“No melamine had been detected in any of its products,” the company confirmed.
Group director manufacturing and supply chain, Gary Romano, said: “Based on all current world standards there is absolutely no health risks to consumers.
“Budenheim advised us last week that testing of the iron supplement, called Ferric Pyrophosphate, had detected melamine levels above the regulatory limit. The product is commonly used to provide additional nutritional value in food.”
Budenheim is supplying Fonterra with a new iron supplement product, which has tested negative for melamine.