Fonterra Dairy Co-operative of New Zealand yesterday said contamination of milk in China had forced it to write down by 70 per cent the carrying value of its Sanlu affiliate at the centre of the scandal that has left tens of thousands of infants ill, mostly in China.
Meanwhile, as Fonterra quantified the cost of the crisis, the collateral costs of the tainted milk scandal continued to spread beyond China and beyond the dairy industry.
Tesco, the UK's biggest supermarket chain, withdrew a range of confectionary from some UK stores on concern over Chinese milk contamination.
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