7 Aug 2013

Sri Lanka suspends NZ milk powder imports

11:00 am on 7 August 2013

Sri Lanka has now suspended milk powder imports from New Zealand and recalled products from the market.

The ministry of health said Customs has been instructed to temporarily halt the clearance of the products.

Reports in Brunei say the government there has ordered a recall and ban on the import, distribution and sale of Fonterra food products.

Fonterra has not identified either of those countries as having been affected by the safety issue, though it has said products containing the contaminated whey had been sold on to Malaysia, Saudi Arabia and Thailand.

NZ reputation dented in China

A markets commentator on China says the Fonterra contamination scare has severely dented New Zealand's reputation and is causing huge controversy there.

Arthur Lim told Nine to Noon the effect of the scare in China has been profound and this country's image has been damaged.

Mr Lim said this is reflected in China's social media with many labelling New Zealand's efforts to deal with the crisis as confused and lacking transparency.

He said Fonterra is viewed as complacent and inextricably linked to the government.

Mr Lim said the Chinese government can strip the country's shelves of New Zealand dairy products with one pronouncement and a great deal is at stake.