Protests force Fonterra to suspend Sri Lankan operations

Fonterra has announced it will temporarily suspend consumer operations in Sri Lanka after accusations of tainted product sparked protests outside its Sri Lanka head office.

According to Reuters, Sri Lankan food authorities claim to have detected high levels of dicyandiamide (DCD), an agricultural chemical, in two batches of milk powder. Fonterra has vigorously disputed this claim.

Members of the National Freedom Front reportedly protested outside Fonterra’s head office in the country, demanding a ban on all Fonterra products. There is some speculation that the protests are politically motivated, as the Sri Lankan government is working to increase domestic production and reduce imports.

A court order has banned the company from selling or advertising its products and making public statements to Sri Lankan customers and consumers. Fonterra says it is taking legal action to fight the order.

“The temporary suspension is the right thing to do,” said Fonterra Chief Executive Theo Spierings. “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.

“Recent events have made it difficult to maintain day-to-day operations, and we need to get them resolved.

“We are also working with the Sri Lankan and New Zealand government authorities on a long-term sustainable solution for our Sri Lankan customers, communities and dairy sector.”