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Fonterra dairy recall shakes China consumer confidence

China has ordered the recall of potentially contaminated milk imported from New Zealand after Fonterra, the world’s largest dairy exporter, found bacteria in its products that can cause botulism.

With nearly 90 per cent of China’s imported milk coming from New Zealand and Fonterra by far the biggest single supplier, Beijing’s response to the dairy scare is being closely watched.

Tim Groser, New Zealand’s trade minister, initially told state broadcaster Television New Zealand that China had banned imports of all milk powder, a move he deemed “absolutely appropriate”. But later yesterday a New Zealand official said the Chinese measures had been more limited.

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