Formula goes sour
OPINION: Media reports say global recalls tied to cereulide toxin contamination in milk-based nutrition brands could inflict combined financial losses exceeding $1 billion.
A $25 million upgrade and expansion of Danone’s Auckland blending and processing plant in late February has doubled its production capacity for finished products.
It is part of $85m spent by the global infant formula company in New Zealand in the past four years. This cements NZ as a critical, strategic supply point for local and regional markets, the company says.
Cyril Marniquet, NZ operations director, says NZ has a strong reputation for high quality milk and efficient production.
“We’re proud to be a growing part of the NZ dairy story through our high-quality international brands and expertise in early life nutrition,” he says.
“Australia remains our number-one export destination, but we’re seeing growing demand for our international products in other markets, including China.
“By doubling production capacity we’re better placed than ever to meet demand in key markets. Today we have end-to-end processing capability, with 450 people working in our NZ processing operations, up from 300 in 2014.”
Agriculture Minister Damien O’Connor says NZ’s ability to sustainably produce high-quality, nutritious food for a growing global population is crucial to our economic future.
“That means moving NZ’s primary sector higher up the value chain so we continue to deliver what international consumers demand,” he says.
“But we must do so in way that is sustainable and leverages our competitive edge as quality food producers. Danone Early Life Nutrition’s investment here shows it shares the same vision for NZ.”
To support its export growth, Danone has innovated and gained critical certifications.
Marniquet says innovation will include the latest global advances and product innovation via their NZ business.
“Our local experts form an integral part of Danone’s Nutricia 400-plus scientists and technologists worldwide.” Their work meets the specific needs of children during their first 1000 days – from pregnancy to two years of age.
“We have approval from the Certification and Accreditation Administration of the People’s Republic of China to manufacture and export direct to China from the Auckland plant. We’ve also been granted a Halal licence by the New Zealand Islamic Development Trust.
“Both certifications recognise our stringent processes in food safety, quality, hygiene and manufacturing. They open up exciting trade opportunities.”
Danone in 2014 bought its Balclutha spray dryer and Airport Oaks (Auckland) blending, packing and canning plants.
Āta Regenerative is bringing international expertise to New Zealand to help farmers respond to growing soil and water challenges, as environmental monitoring identifies declining ecosystem function and reduced water-holding capacity across farms.
Yili's New Zealand businesses have reported record profits following a major organisational and strategic transformation.
Owners and lessees of certain Hino Trucks New Zealand diesel vehicles have just 10 days remaining to register or opt out of a proposed $10.9 million class action settlement.
Silver Fern Farms has successfully produced and delivered 90 tonnes of premium chilled New Zealand lamb and beef to the United Arab Emirates via airfreight.
For the first three months of 2026, new tractor deliveries saw an increase over the previous two months, resulting in year-to-date deliveries climbing to 649 units - around 5% ahead of the same period in 2025.
QU Dongyu, director-general of the Food and Agriculture Organization of the United Nations (FAO), has issued a warning saying that global fertiliser scarcity caused by disruptions in the Strait of Hormuz will lead to lower yields and tightening food supplies into 2027.

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