Friday, 04 April 2014 16:39

Fonterra $300k fine ‘proportionate’

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FEDERATED FARMERS believes Fonterra's $300,000 fine on charges relating to the 2012 whey protein recall is "proportionate".

 

Fonterra accepted four Ministry for Primary Industries (MPI) charges relating to the recall.

"To a shareholder, $300,000 is much better than what the cooperative potentially faced," says Willy Leferink, Federated Farmers dairy chairperson.

"Given the size of negative coverage relating to the non-botulism scare and the dent it put into the coop's reputation, the size of the fine is proportionate.

"Especially given Fonterra did not contest the charges brought by MPI. Even the Crown Prosecutor acknowledges Fonterra has swiftly moved to put its house in order.

"As supplier shareholders and unit holders will ultimately meet the cost of the fine, we are certain Fonterra's management has got the message loud and clear," Leferink says.

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