Suspended

Aug 23, 2013 (LBO) – Fonterra New Zealand said it had temporarily suspended Sri Lanka consumer operations to protect its workers and assets amid nationalist protests and a court order halting sales and distribution. “Fonterra Sri Lanka is currently subject to a court Enjoining Order which has shut down our ability to sell product, advertise it or make public statements in any way with customers or consumers in Sri Lanka.

“Legal action is underway that is aimed at resolving the Enjoining Order.”

Update II “The temporary suspension is the right thing to do,” Theo Spierings, chief executive Fonterra Co-operative Group Limited said in a statement filed with New Zealand stock exchange.

“It is a precautionary measure to ensure our 755 people working there are safe. We have closed our plants and office in Sri Lanka, and have asked our people to stay at home.”

Sri Lanka said it had found traces of dicyandiamide (DCD) in at least two batches of milk powder which appeared to have been produced in late 2012. The testing agency said yesterday it found the latest batches free of contamination.

Yesterday a Sri Lankan nationalist party protested outside the factory.

Spierings said assurances