WELLINGTON Aug 19 New Zealand's Fonterra, the
world's top dairy exporter, said on Monday an injunction banning
the sale of its products in Sri Lanka because of alleged
contamination was incorrect and unjustified as it sought to
control a growing customer backlash.
On Friday, A Sri Lankan court banned the sale and
advertising of all Fonterra Co-operative Group Ltd
milk products for two weeks. A trade union had sought
the court ban because Fonterra products suspected of being
contaminated with the agricultural chemical dicyandiamide (DCD)
were still on the market.
Fonterra said last week it had withdrawn two batches of milk
powder allegedly containing DCD under orders from Sri Lankan
authorities, although it has disputed the accuracy of the
"We strongly refute the allegations on which this injunction
has been made," Johan Priem, Fonterra's managing director Asia
Pacific, Middle East and Africa, said in a statement issued to
the New Zealand stock exchange.
"Our independent testing has found no traces of DCD in any
Fonterra branded products in Sri Lanka and no affected whey
protein concentrate or products containing it have been sent to
the country," Priem said.
Fonterra has said it would fight the official Sri Lankan
ban, and is looking at legal options regarding Friday's
The Sri Lankan ban comes as Fonterra looks to recover from
the global food scare caused by the finding of a bacteria that
can cause botulism in whey protein concentrate, which is used in
infant formula and other products.
That contamination scare sparked product recalls and bans on
some Fonterra products in countries including China, Russia and
(Reporting by Gyles Beckford; Editing by Lincoln Feast and