18 Mar 2014

Key to discuss botulism scare in China

5:15 pm on 18 March 2014

Prime Minister John Key is in to China to brief leaders on the outcome of government investigations into the Fonterra botulism scare.

The Ministry for Primary Industries last week laid four charges against Fonterra as a result of the inquiry, which found the dairy giant failed to meet animal product standards and did not process its dairy products in accordance with its risk management programme.

Fonterra pleaded guilty and will be sentenced in April.

In August last year, Fonterra sparked a worldwide recall of dairy products, including infant formula, after it was suspected that 38 tonnes of whey powder protein from its Hautapu plant in Waikato had become contaminated with botulism-causing bacteria.

Later tests showed that the products were safe, and Mr Key's trip to China aims to help repair the market and reassure consumers.

Chinese Ambassador to New Zealand Wang Lutong said New Zealand accounted for 70 percent of China's imported dairy products, and that the trade did not appear to have been affected by the contamination scare.

"And actually both of us became wiser because of this incident. Your Government is urging your private sector to learn more about China, about China's market, about the consumption habits of Chinese consumers," he said.

But Victoria University Contemporary China Research Centre senior marketing lecturer Hongzhi Gao said he was in China last month and was surprised at how little people knew of the outcome of the contamination scare.

"And a lot of people knew (about it) but they didn't know it was a false alarm, even though we know," he said.

The New Zealand Government needed to work harder to make sure Chinese media reported on Mr Key's visit there, Dr Gao said.

"If the Prime Minister can manage to take advantage of this visit to talk about last year's crisis, and also get an endorsement from Chinese senior officials, or even the leaders of the country, to have certain confidence in New Zealand imports or New Zealand dairy products, then that will be a plus. I think that would be the best possible goal you can achieve."

Call to apologise

Labour's primary industries spokesperson Damien O'Connor said the charges laid against Fonterra were a face-saving exercise for the Government, and at the very least Mr Key needed to apologise to Chinese consumers for the incident.

"They are our single biggest trading partner. We really need them. We need to have a healthy relationship with them. At the moment, they've been battered around," Mr O'Connor said.

"We need to assure them that we are resourcing the trade properly, overseeing it, guaranteeing safe food."

But Prime Minister John Key said there was nothing to apologise for and, in fact, apologising would make it look as if there was a problem.

New Zealand had been quick to pass on information about the problem and to recall product, and he believed the Chinese recognised that.

Mr Key said he would answer basic questions about the false alarm and how it was handled.

"This is a country that believes a lot in face-to-face contact and paying respect, and I think the fact that I was prepared to travel to China and to talk about the lessons learned and to ensure that they had confidence goes a long way in China," he said.

Mr Key will meet Chinese Government officials, including the Chinese President, as well as media and business delegates during his three-day trip to Beijing and Shanghai.