What Would Synlait Be Worth to Fonterra or a2 Milk?
Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.
The particular whey protein concentrate concerned (WPC80) is used by Fonterra's customers in a range of products including infant formula, growing up milk powder and sports drinks. Eight Fonterra customers are believed to be affected.
Fonterra initially identified a potential quality issue in March this year, when a product tested positive for Clostridium. There are hundreds of different strains of Clostridium, the majority of which are harmless.
Product samples were put through intensive testing over the following months. On July 31, tests indicated the potential presence of a strain of Clostridium (Clostridium Botulinum) in a sample, which can cause botulism.
Managing director NZ Milk Products, Gary Romano says the co-op immediately contacted its customers and the appropriate authorities, so that any potentially affected product could be removed from the marketplace.
"We are working with our customers and will provide more information and updates as they become available," Romano said in a media release issued at 1am today. A media briefing will be held later this morning.
Fonterra says any consumer product recalls that may need to take place will be initiated by the respective food companies.
There have been no reports of any illness linked to consumption of the affected whey protein. Dairy products such as fresh milk, yoghurt, cheese, spreads and UHT milk products are not affected.
Fonterra chief executive Theo Spierings says food safety is Fonterra's number one priority.
"We take matters of public health extremely seriously and we are doing everything we can to assist our customers in ensuring any product containing this ingredient is removed from the marketplace and that the public is made aware
.
"We are acting quickly. Our focus is to get information out about potentially affected product as fast as possible so that it can be taken off supermarket shelves and, where it has already been purchased, can be returned," Spierings says.
What is botulism?
Botulism, also known as botulinus intoxication is a serious illness that causes paralysis, caused by the botulinum toxin. The toxin is caused by Clostridium botulinum, a type of bacterium.
There are four ways in which the toxin can enter the human body:
• Infant botulism - by colonisation of the digestive tract by Clostridium botulinumin babies.
• Adult botulism - by colonisation of the digestive tract by Clostridium botulinumin adults.
• Foodborne botulism - as a result of eating foodstuffs with the toxin.
• Wound botulism - when botulinum toxincontaminates a wound.
All types of botulism eventually lead to paralysis, which generally starts with the face muscles and then spreads to the limbs. In severe cases there is respiratory failure when the breathing muscles become paralysed. Because of this, all botulism cases are treated as medical emergencies
