Dairy giant bullish over orders as milk formula product recall expands

New Zealand dairy giant Fonterra yesterday insisted its customers were sticking to their supply contracts with the world’s largest dairy exporter for the moment, even as Singapore expanded its recall of milk formula products containing a tainted ingredient produced the company.

Danone Dumex took more infant formula tins off supermarket shelves in Singapore as a precaution after being told by Fonterra that the product was packed on a production line that may have held residue of the questionable material, Singapore’s Channel NewsAsia reported, quoting a statement from Danone Dumex.

Fonterra chief executive Theo Spierings said he had not seen any signs of a reduction in supply contracts by its clientele, which include major food and beverage multinationals, but acknowledged the risk that its bottom line may take a hit in the future.