FONTERRA BELIEVES HONG KONG CLAIM HAS NO FOUNDATION
Fonterra Co-operative Group today confirmed that the Hong Kong Small Claims Tribunal had adjourned the hearing of a compensation claim against a Fonterra company in Hong Kong.
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The tribunal adjourned the hearing until May 25 requiring the claimants to provide some evidence in support of their claim.
Fonterra general counsel David Matthews said: “The problem of melamine contamination in China arose from an industry wide criminal contamination of milk involving 22 local dairy companies.
“We recognise that this was a tragedy for all concerned.
“The claimants are residents of mainland China. The Chinese Government managed the compensation for victims of melamine poisoning and we understand these claimants would have been included in that compensation scheme.
“We understand that the lawyer representing the claimants has already pursued compensation matters in mainland China and we believe that is where this matter should be dealt with, not Hong Kong.
“For these reasons, we do not believe there is any legal foundation for this claim,” he said
Mr Matthews said Sanlu was wound up last year, partly as a result of having to meet its share of the compensation scheme established by the Chinese Government – some RMB900 million.
Fonterra had written off the entire value of its investment in Sanlu – NZD200 million.
About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.
The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
