Fonterra, a New Zealand-based dairy co-operative, is in talks with French food manufacturer Danone to resolve a dispute following the whey protein concentrate precautionary recall initiated in August 2013.
The recall of infant milk formula and sports drinks in nine countries, including China, was initiated when the company has discovered a bacteria in one of its products.
However, New Zealand's Ministry for Primary Industries later said that the tests showed the botulism scare had been a false alarm as whey protein concentrate made by Fonterra contained a less harmful bacteria, 4-traders.com reported.
Danone, meanwhile, has issued a recall of its Dumex milk formula products containing the affected ingredient in China and its Nutricia brand of milk formula was withdrawn from supermarket shelves in New Zealand.
Fonterra stated that the discussions with Danone had been confidential with a view to reach a mutually acceptable commercial outcome, however some aspects of these discussions have been made public.
