Fonterra in damage control

The co-op's chief executive Theo Spierings has flown to China to meet with customers and regulatory authorities. Spierings will hold a media briefing in Beijing on Monday morning to quell a backlash among Chinese consumers.

Chinese authorities have reportedly banned New Zealand dairy products. The Russian Government has issued a statement halting all trade in dairy products from NZ.

Fonterra managing director NZ Milk Products Gary Romano told a media briefing in Auckland this evening that there were "unconfirmed reports" of bans in China and Russia.

Romano says the co-op will be in touch with authorities in both countries to seek clarity.

The New Zealand Government has also stepped in. Fonterra chairman John Wilson and Romano met Trade Minister Tim Groser and Science and Innovation Minister Steven Joyce in Auckland last night.

But the co-op has refused to say what was discussed. Fonterra's group communications director Kerry Underhill says the meeting was ''frank and constructive''. But he declined to say whether the ministers questioned him on how long it took for the issue to emerge.

Fonterra announced on Saturday that a dirty pipe at its Hautapu plant in the Waikato might have contaminated three batches of a whey protein called WPC80 with bacteria that can cause botulism, a potentially fatal illness.

Several Fonterra customers have recalled their products. About 38 tonnes of contaminated WPC80 was sold by Fonterra.