New Zealand-Dairy industry more problems.

NEW ZEALAND

Fonterra the giant New Zealand dairy company, are claiming that there is a further 9% drop in the price of export powder milk.

The company managing Director Kelvin Wickham, said " Dairy prices have fallen as a result of a cyclical lag between supply and demand responses".

The company has just written off NZ$200 million over their investment in the Sunlu dairy company in China, as the company was made bankrupt after the melamine dairy scandal.

The CEO of Sunlu is in prison, awaiting sentence after the death of 6 babies and the hospitalization of 50,000 infants due to contaminated milk products.

Things look better for the company in South America, where the Soprole dairy company sold 42.6 pc of its shares to the New Zealand Cooperative Group. for US$201.9 million.

Approval from the Vatican was required and granted, as the Chilean company has been run as a charitable foundation, under Canonical Law in recent years.

Fonterra already owned 56.85 pc of the dairy, which was purchased from minority shareholders.