China lifts import ban on Fonterra whey products and infant formula

China has lifted its temporary ban on New Zealand-based dairy co-operative Fonterra’s whey products and infant formula.

The company noted that these two products accounted for about 3% of its total exports to China. Fonterra is now expected to resume the sale of ingredients to Chinese infant formula manufacturers.

China had banned imports of Fonterra products following a scare in August 2013 after the company discovered a bacterial strain in some of its products that could cause botulism. This had led to recalls across Asia by baby formula makers like Danone and Abbott Laboratories.

Fonterra’s announcement had also resulted into a global recall of about 1,000t of dairy products across seven countries, including China. The scare later turned out to be a false alarm.

The temporary suspension accounted for a third of New Zealand’s dairy exports to China, which was valued at $2.6bn in 2012. Fonterra’s dairy products account for almost 90% of the country’s dairy exports to China.

Following the false scare last year, Fonterra was fined about $300,000 in April for causing the food safety scare that Judge Peter Hobbs said had shaken New Zealand’s reputation as an exporter.

Also, the company is still facing civil action by French company Danone which produces infant formula Nutricia. As a result of the scare, Danone had to recall 67,000 cans of Karicare infant formula in New Zealand.