Fonterra's decision to recall its products was right, despite tests now showing the bacteria initially identified by AgResearch could not cause botulism, says Chief Executive Theo Spierings.

'For me personally it was the right decision to take the drastic steps because if even one child had been affected it would have been unacceptable,” he told a press conference this evening.

The conference was called just an hour after the Ministry for Primary Industries announced it had received results confirming the bacteria found in the whey protein concentrate manufactured by Fonterra is not Clostridium botulinum.

The organism is confirmed as Clostridium sporogenes. It is therefore not capable of producing botulism.

MPI acting director-general Scott Gallacher says there are no known food safety issues associated with Clostridium sporogenes, although at elevated levels certain strains may be associated with food spoilage.

Earlier in the day Fonterra urged MPI to release its findings and Theo says Fonterra did not receive the results until the same time as MPI went public with them at 4pm.

'What I want to share with New Zealand the world is that there is no risk. I am very relieved.

Food safety is number one (for Fonterra).

'We did the right thing, made the right calls all the way. We acted decisively.”
Theo says there is much to learn from the experience and it was not easy to recall the products and in the first 72 hours there was confusion for consumers.

'I apologise for the confusion and anxiety it caused for parents.”

Maury Leyland group general manager of strategy for Fonterra says when concerns over product being processed in Australia were raised, it was traced back to Fonterra's Hautapu plant and tests were carried out in Fonterra's Palmerston North laboratory 'but we were not able to rule out that it was not Clostridium botulinum”.

AgResearch was then asked to test the product and those tests showed the likely presence of Clostridium botulinum, which sparked the complex recall of product and subsequent storm of media reports and a ban on Fonterra products by Sri Lanka and Russia.

When asked how it was the AgResearch got it so wrong Theo said 'I do not judge the mistakes of other people.”

The methods AgResearch used where United States Food and Drug Administration approved methods, he says. As to whether any action could or would be taken against AgResearch Theo says 'there are questions to be asked once we have the answers, which are part of the review.”

MPI has today informed overseas regulators of its test results, and Scott Gallacher says it will be providing them with a full diagnostic report shortly.

'I will also be revoking my Director-General's statement, issued under the Food and Animal Products Acts, about this issue.

'A failure of hygiene during processing remains a concern for customers incorporating whey into their products. However, the concern primarily relates to quality and the potential for spoilage when used in foods that support growth of Clostridium sporogenes from spores.”

As well as giving assurances about the safety of its products, Fonterra also today announced it has resumed its consumer operations in Sri Lanka, following a thorough assessment by management that there is no risk to Fonterra staff and that the situation has now stabilised.

'Last Friday we took the decision to temporarily suspend our Sri Lanka operations to protect our people, and to protect our farmer shareholders' assets.

'I am now confident that our people are safe and the business is ready to resume operations and continue selling high quality dairy nutrition to Sri Lankan people,” says Theo.

The Enjoining Order, which had prevented Fonterra from selling its products in Sri Lanka, was overturned in the Gampaha District Court last Friday.

Fonterra will continue to work with Sri Lankan and New Zealand government authorities on a long-term sustainable solution to support its Sri Lankan customers, communities and the local dairy sector.