Clostridium bacteria found in New Zealand's whey protein concentrate in 3 export batches to China.
Whey protein concentrate is added to baby food, among other things. The bacteria discovered can cause botulism, a disease that is toxic to humans. The findings in the product exported to China and elsewhere have led to a Chinese import ban. The incident is so explosive because thousands of infants fell ill and some died in China following the melamine scandal. The Chinese milk market has still not recovered from this case. China is the largest importer of New Zealand dairy products. This is a highly sensitive area.
The New Zealand dairy company FONTERRA explains that only whey powder products and no other products are affected by the import ban. It is assured that no whey protein concentrate will be offered on the occasion of the international internet auction next Tuesday 06.08.13.
A discovery of contamination from another source in January of this year did not lead to any noticeable market or price collapse. It is hoped that the case will be cleared up as quickly as possible and the cause remedied.
The FONTERRA share has lost value and even the New Zealand dollar has been temporarily affected.
In view of New Zealand's central importance for the dairy sector, an unbridled expansion of this incident could be of global significance and affect the prices of dairy products in this country too.
Addendum:
Although the internet auction held by the New Zealand dairy FONTERRA on August 6, 2013 closed 2.4% down on the previous auction, there is no connection with the contamination. The price decline was clearly a consequence of the greatly increased supply for the Sept-Oct delivery dates. Milk fats in the form of clarified butter and normal butter were particularly affected.
It seems that the incident will not be scandalously extended.
