New Zealand-Dairy writes off NZ$200 million.

NEW ZEALAND.

NZ$200 MILLION DAIRY LOSS.

New Zealand dairy giant Fonterra, has written off $200 million, against losses incurred in their investment into the Chinese dairy industry. This comes in the wake of the melamine food poisoning scare.

Andrew Ferrier, the managing director of the company, has blamed the authorities in China for being to slow to react to the crisis, in August of this year.

Fonterra had a 43% stake in Sanlu, which was the largest dairy company in China, this was the company which produced the formula milk that caused the death of 6 babies and 50,000 other infants were hospitalized.

The Chinese dairy industry, is worth US$20 billion a year. This may not be the end of the matter as there are numerous law suits filed with the courts in China.