5 Sep 2013

Fonterra bosses head to China to bolster reputation

7:07 am on 5 September 2013

Fonterra bosses will spend next week in China trying to convince customers they have stronger systems in place to avoid another contamination scandal.

The co-operative on Wednesday issued findings of its operational review after its recent product recall.

Chief executive Theo Spierings said a series of one-off, unrelated lapses and events led to the false botulism scare.

A major action plan has been urgently put in place as the peak milk season gets underway.

It includes better food quality and safety systems, better information flows within the company and improved product recall systems.

Mr Spierings said the company is now on a campaign to rebuild its reputation and the board will present the review, translated into Mandarin, to customers in China.

He said he and the full board, including the chief financial officer, will visit China and then split into three groups with one visiting the North, one the South and one the East.

"And we really engage with local authorities, with customers, with consumers, we make ourselves available, so it's not a board visit as such, it's really a work visit to start our reputational strengthening."

Mr Spierings said he is confident the action plan will take Fonterra's manufacturing facilities from world class to world best.

He said the Fonterra board will complete its own review at the end of the month.

Mr Spierings said he in talks with the chief executives of the nutritional customers affected by the recall but it is too soon to discuss compensation.