Friday, 10 January 2014 10:01

Danone launches legal proceedings

Written by 

FONTERRA SAYS IT will 'vigorously defend' legal proceedings which have been formally initiated by Danone.

This action by Danone follows the whey protein concentrate precautionary recall initiated by Fonterra in August last year.

Fonterra has been in ongoing commercial discussions with Danone and is disappointed that they have resulted in legal action, it says in a statement.

"Fonterra will now work through the detail of Danone's claims. It continues to be confident in its position and will vigorously defend any proceedings," it says.

"Fonterra stands by its track record of having world-class food safety and quality standards, quality systems, and robust testing regimes across all its manufacturing facilities."

Various news sources report that Danone is suing Fonterra in the High Court in Auckland and seeking arbitration in Singapore. Danone previously claimed it lost an estimated $450m as a result of the precautionary recall of infant formula containing whey protein concentrate supplied by Fonterra. The whey protein concentrate was suspected of harbouring a botulism causing bacteria but this was a false alarm.

News sources also report that Danone has cancelled its supply contract with Fonterra and is making any further contracts with Fonterra contingent on "full transparency" and respect of safety procedures the company requires of suppliers.

More like this

El Niño Summer: Terravest on Preparing Dairy Sheds Now

After a winter of frozen pipework and refrigeration call-outs, Terravest chief executive Kip Bodle and chief operating officer Luke Walker explain why this El Niño summer calls for a different kind of preparation, before the first heatwave finds the weak points for you.

Why 'Fork to Farm' Beats Farm to Fork, Expert Says

In the past, much has been made of the concept of farm to fork, but an Australian expert in food science and marketing with experience in the dairy industry, Dr Angeline Achariya, says the reverse of this slogan is critical to win modern day consumers.

Featured

Editorial: Drones Are Not Toys

OPINION: David Seymour and James Meager's plan to make it easier for farmers and orchardists to operate drones can best be described a 'courageous' move.

Opuha Dam Commissions New Valve in Major Flood Safety Upgrade

Opuha Dam's ability to protect South Canterbury communities from major flooding has taken a significant step forward, with Opuha Water Limited (OWL) successfully commissioning a new outlet valve capable of releasing record volumes of water from the dam ahead of a weather event.

National

Machinery & Products

» Latest Print Issues Online

Milking It

Domestic Focus

OPINION: After hogging the media limelight for telling a NZ Chinese MP to "go back home", Winston Peters has decided…

A No-Brainer

OPINION: With fuel prices soaring, one would have expected most farmers to be reclaiming excise duty on petrol.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter