Source:Xinhua Published: 2013-8-28 16:50:16
Beleaguered dairy giant Fonterra took a step towards normalcy by reopening its factory in Sri Lanka on August 28, the company said in a statement released in Colombo.
Fonterra announced it has resumed its consumer operations in Sri Lanka, following a thorough assessment by the management that there is no risk to Fonterra staff and that the situation has now stabilized.
"Last Friday we took the decision to temporarily suspend our Sri Lanka operations to protect our people, and to protect our farmer shareholders' assets," Fonterra Chief Executive Theo Spierings was quoted as saying in the statement.
"I am now confident that our people are safe and the business is ready to resume operations and continue selling high quality dairy nutrition to Sri Lankan people."
A court order, which had prevented Fonterra from selling its products in Sri Lanka, was also overturned last Friday.
Spierings said Fonterra will continue to work with Sri Lankan and New Zealand government authorities on a long-term sustainable solution to support its Sri Lankan customers, communities and the local dairy sector.
Fonterra was accused by a Sri Lankan government research institute of having dicyandiamide (DCD) in its milk power, a chemical used in fertilizers to prevent them from soaking into rivers, which can be toxic in large amounts.
Two batches of Fonterra's imports were banned by Sri Lanka's Health Ministry three weeks ago for containing DCD but the company has rejected the charge.
The 39 metric tons of milk powder was recalled and products such as chocolate that could also contain contaminated milk powder or whey protein were ordered off shelves.
Sri Lanka is the fifth largest purchaser of Fonterra products in the world
Fonterra has a large footprint in Sri Lanka with 65 percent market share that climbs to 76 percent when yoghurt is included.