Fonterra has temporarily suspended its consumer operations in Sri Lanka after it faced allegations that some of its milk products were contaminated.
The protests comes after claims by the Sri Lankan authorities that some of Fonterra's products have been found to be contaminated with traces of the fertilizer chemical dicyandiamide (DCD). However, the co-operative and New Zealand denied the claims.
Fonterra chief executive officer Theo Spierings said that the temporary suspension is the right thing to do and is a precautionary measure to ensure its 755 employees working there are safe.
"At the same time, we must do all that we can to protect our farmer shareholders' investment in Fonterra's Sri Lanka manufacturing and commercial operations," Spierings added.
Fonterra Sri Lanka is currently subject to a court Enjoining Order which has shut down its ability to sell product, advertise it or make public statements in any way with customers or consumers in Sri Lanka.
Fonterra stated that it is working with Sri Lankan and New Zealand government authorities on a long-term sustainable solution for its Sri Lankan customers, communities and dairy sector.
This incident comes at the time Fonterra is seeking to restore its reputation after some of its products were banned in China.
Earlier this month, the co-operative announced that batches of its whey protein, which is used for the manufacture of infant formula, beverages and animal feed, contained bacteria that poses risk of botulism. The affected products have been removed from shelves in approximately nine countries including China, while other countries have restricted imports.
