Fonterra’s Melamine Nightmare

Criminal contamination of the milk supply chain in China embroiled New Zealandís largest commercial organization Fonterra in a crisis that left four babies dead and 3,000 still in hospital. An estimated 54,000 children were poisoned after consuming milk formula tainted with the waste chemical melamine, which was added to raw milk to increase protein content. Official delays in recalling product and informing the public compounded the human dimensions of this crisis. Fonterra is the worldís largest dairy exporter, responsible for more than a third of international dairy trade. It has written down its 43% investment in Chinese dairy brand Sanlu, and donated $8.4 million to set up a rural healthcare project. Several inquiries are underway to ensure this never occurs again. Commentators have drawn lessons for New Zealand exporters.