Fonterra will plead guilty to charges brought by the Ministry for Primary Industries over last year's botulism scare but if dairy farmer payouts will be affected by any fines imposed is not yet clear.

A spokesperson for Fonterra says the company cannot comment on where the money to cover possible fines may come from because there is a 'media blackout” on financial statements as Fonterra is due to announce its trading results shortly.

On Wednesday MPI filed charging documents in Wellington District Court against Fonterra Limited, following MPI's compliance inquiries into last year's whey protein concentrate incident.

At the time it was believed the protein may have been contaminated with botulism and Fonterra voluntarily announced those concerns, resulting in the withdrawal from sale of some brands of infant formula in particular, both in New Zealand and overseas.

It was subsequently confirmed that the recalled products did not present a health risk.

But, MPI is taking four charges against the company for: processing dairy product not in accordance with its Risk Management Programme; exporting dairy product that failed to meet relevant animal product standards; failing to notify its verifier of significant concerns that dairy product had not been processed in accordance with its Risk Management Programme; and failing to notify the director general as soon as possible that exported dairy product was not fit for intended purpose.

MPI will not make further comment as the matter is before the courts.

Fonterra, a wholly owned subsidiary of Fonterra Co-operative Group Limited, says it accepts the charges arising from the MPI investigation into events leading up to the precautionary whey protein concentrate (WPC80) recall last year.

Fonterra's people, culture and strategy managing director Maury Leyland says Fonterra has co-operated fully with MPI throughout its investigation, and accepts responsibility for the allegations made in the charges.

'Our customers and consumers need to know that New Zealand's food quality and safety regulations are being robustly applied by food manufacturers and enforced by New Zealand authorities,” says Maury.

'Fonterra is committed to complying with New Zealand's food safety and quality regulations, and being held accountable if it does not.

'We have accepted all four charges, which are consistent with the findings of our Operational Review, and the Independent Board Inquiry.

'We have previously detailed issues relating to the decision to reprocess the original WPC80, and being slow about escalating information – which are reflected in the charges laid by MPI.

Federated Farmers is pleased to see Fonterra has accepted the MPI charges, says Federated Farmers dairy chairperson says Willy Leferink.

'This scare has been invaluable learning curve for Fonterra and they are making positive changes already to make sure this never happens again,” says Willy.

'Our reputation for food quality and safety is paramount to our success on the world stage. Whilst this product recall was a false alarm it has unearthed some flaws in Fonterra's system. By whole heartedly accepting the charges laid by MPI yesterday, Fonterra has shown they are on the front foot of this issue.

'This is not just a lesson for Fonterra, all food producers in New Zealand should take note and learn from their experience, I am sure there will be a case study coming out soon.

'Our customer's perception of us can make or break our industry, I know I am not alone in saying we hope this never happens again.”