Statement by Fonterra CEO Andrew Ferrier to media conference
Let me say at the outset, this is a truly tragic occurrence. We are shocked and dismayed that this type of milk contamination could occur in China or anywhere in the world. Our hearts go out to the parents and the infants who are affected by this terrible tragedy.
Fonterra’s first concern is public and consumer safety and we are doing everything we can to assist the Chinese Government in their investigation.
We still do not have all the facts but let me share with you what we do know about the sequence of events and what we have established from the available information.
The San Lu Board, on which we have three directors, was first advised on August 2 that there was a problem with the contamination of infant formula. This was the first Fonterra knew of this issue.
At that point Fonterra pushed hard for San Lu to immediately conduct a recall of affected product.
San Lu, in conjunction with the Chinese Government authorities, immediately implemented a trade recall of infant formula.
San Lu, again working with the Chinese health authorities, then instituted a full public recall of all infant formula.
Now the Chinese Government is recalling all San Lu products.
The process and investigation is being handled by the Chinese Government Ministry of Health. But it is our understanding that it has now been confirmed that the source of contamination was the raw milk. San Lu purchases this raw milk from third parties. It is also my understanding that its been established that the possibility of contamination via the production, storage and sales process has been excluded.
Clearly this is a very serious issue and for Fonterra our first and only priority is public and consumer safety. We are doing all we can to assist the Chinese Government in its efforts to get to the bottom of this incident and, just as importantly, make sure the systems are in place to ensure it can never happen again.
