Fonterra milk powder thought to be contaminated by an agrichemical has been destroyed in Sri Lanka.
The New Zealand dairy cooperative on Friday confirmed reports that 130 tonnes of product quarantined in 2013 have now been disposed of.
Fonterra told Radio New Zealand the powder was nearing its expiry date - although some Sri Lankan media reports have suggested it was destroyed because of delays in testing for dicyandiamide, or DCD
Fonterra said more of its product is being held by authorities in Sri Lanka.
The Sri Lankan government believed the milk powder was a threat to food safety and Fonterra was targetted by protesters there last year and banned from advertising in the country for a period.
Fonterra and the Ministry for Primary Industries knew in September 2012 that DCD was showing up in milk but did not alert trading partners, the public or other dairy companies for four months.