French dairy major Danone has commenced legal proceedings against New Zealand-based dairy co-operative Fonterra over losses from the recent whey protein concentrate (WPC80) contamination scare.
The company has initiated proceedings in the New Zealand High Court, as well as arbitration proceedings in Singapore to reach a compensation agreement with Fonterra.
Danone stated that it is also terminating the existing supply contract with New Zealand firm until it implements better food safety procedures.
Fonterra stated that it will work through the detail of Danone's claims and will vigorously defend any proceedings.
On 2 August 2013, Fonterra alerted Danone over a possible contamination of ingredients supplied to it; however, tests revealed that it was a false alarm.
The false alert triggered a recall of certain infant formula products in more than seven countries.
