Fonterra’s Whey Powder and Base Powder Return to the Chinese Market

The Chinese government’s temporary ban on the import of Fonterra's milk powder to produce infant formula has been in place since the botulism scandal broke in August 2013 (see CL Food News on 6 Aug 2013). The ban has recently been lifted allowing Fonterra to resume whey powder and base powder exportation to China. Russia is however still instituting its ban of Fonterra products.

Fonterra’s total dairy exports to China occupy a huge proportion of the total exports from New Zealand to China. It is estimated that the temporary injunction has negative effect on almost one third of New Zealand’s total dairy exports. China is one of the largest consumers of NZ dairy and as such any regulatory change brings with its tremendous impact on foreign trade and the economy as a whole.