Sunday, July 3, 2022

GDT products not impacted by Fonterra quality issues

Fonterra has announced that none of the products that it has sold or will continue to sell on the GDT (GlobalDairyTrade) auction platform are affected by the current quality issue relating to Clostridium. Whey Protein Concentrate (WPC-80) is not a product that Fonterra, or any other suppliers, offers on the GDT platform.   However the fall-out from this quality issue has already spread well beyond the products and the companies directly involved with the small volume of contaminated product. When the NZX Share Market opened on Monday morning their was little investor appetite for shares in dairy related companies.  Fonterra shares took a dive, but prices for other dairy related companies not directly involved in the quality issues such as Synlait and A2 Corporation were also negatively impacted.  These companies may be impacted in the short-term by trade restrictions imposed in certain markets.   “We expect that this incident will result in some short term disruption to trade and some additional testing requirements for some markets, but we do not expect this event to impact the growth of our infant formula business beyond the immediate disruptions.” John Penno Synlait Synlait Milk Managing Director John Penno says food safety and product quality is of paramount importance to the Company and it supports the precautionary approach being taken by MPI and the wider industry. “We expect that this incident will result in some short term disruption to trade and some additional testing requirements for some markets, but we do not expect this event to impact the growth of our infant formula business beyond the immediate disruptions.” There has also been little action on the NZX Dairy Futures market today as market participants access the wider impact of the whey protein concentrate (WPC-80) issues.    Whole milk powder offerings on GDT are at their
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