Fonterra CEO says sees no drop in orders after food safety scare

Reuters News
Posted: Aug 07, 2013 11:46 PM
Fonterra CEO says sees no drop in orders after food safety scare

WELLINGTON (Reuters) - Fonterra CEO Theo Spierings on Thursday said that he had not seen a reduction in the dairy exporter's customers since it was found to have produced contaminated dairy ingredients, while acknowledging the risk that its bottom line may take a hit in the future.

"The answer to that question is no," he said in response to a reporter's query at a news conference regarding whether the company has seen a reduction in orders since the announcement that Fonterra had discovered it had exported tainted whey protein powder nearly a week ago.

"Of course that discussion will come to the table, as we do have contracts...but there have been no discussions on future contracts or those kinds of things," Spierings said.

He added that Fonterra would make full disclosures on the financial impact of the ensuing global food safety scare as necessary.

Fonterra, the world's largest dairy exporter, has come under fire at home and abroad for dragging its feet in saying it sold whey protein products that contained a bacteria which can cause botulism, a potentially fatal food poisoning.

(Reporting by Naomi Tajitsu; Editing by Matt Driskill)