Wednesday, 26 March 2014 16:31

Fonterra ‘confident’ in Danone case

Written by 

FONTERRA IS "very confident" with its legal position in the Danone case and has budgeted just $11 million, says Lukas Paravicini, chief financial officer.

The $11 million set aside in the Danone law suit is what it views as its legal obligation in the contract, Paravicini said today at the release of its half-year result.

"We are very confident with our legal position and we will defend that position vigorously and at this stage we do not see the need for any further provisions under the legal contractual obligation."

Danone has previously indicated lost sales from precautionary food safety recall of whey protein concentrate supplied by Fonterra cost the company at least $500 million.

Chief executive Theo Spierings said today Fonterra would be happy to have Danone back as a customer.

"Danone is a very key customer, it is very unfortunate we went through the 'event'. There's two parties involved here – two parties with different opinions."

He says they would be open to a commercial discussion with Danone at all times. "But there is a legal situation ... so we are not going to talk about it here right now," he told a press conference at the Auckland's head office.

But on the commercial side they have an approach of "an open line like any customer", he said.

More like this

A Year of Delivery for Fonterra

Fonterra’s 2026 financial year was a year of delivery, with record volumes of milk collected, processed and shipped by the co-op.

Featured

A Year of Delivery for Fonterra

Fonterra’s 2026 financial year was a year of delivery, with record volumes of milk collected, processed and shipped by the co-op.

Editorial: Common Sense Prevails

OPINION: The Government's decision to reinstate agriculture and horticultural science as a standalone subject from Year 11 is the right one.

Miriam Lauridsen on Farm Health and Safety Culture

When dairy manager Miriam Lauridsen learned the farm, she was joining held weekly health and safety meetings, she initially thought that was “a bit over the top”. Experiencing that culture changed her mind.

National

Machinery & Products

Claas Balers Turn 30

Claas built its first variable chamber round baler - the Variant 100 - in 1996, so 2026 marks 30 years…

» Latest Print Issues Online

The Hound

'LinkedIn Greens'

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…

UK Warning

OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter