New Zealand-Potential fall out from China milk scandal.

NEW ZEALAND.

FALL OUT FROM CHINA DAIRY SCANDAL.

Giant New Zealand dairy company Fonterra, are looking very embarrassed over the plea of guilty by the CEO on Sunlu Foods in China, to have been knowingly selling contaminated milk for 4 months causing the death of six babies.

The fact that Fonterra owned 40% of Sunlu and took an active role in the business, leaves the question, were they also aware, as this was the biggest open secret in the Chinese dairy industry

Tian Wenhua, the CEO of Sunlu, and very highly respected lady in the Chinese farming world, pleased guilty to charges of knowingly poisoning 300,000 infants by having melamine in her baby milk formula, which gives a high protein reading.

The NZ company have allegedly lost NZ$200 million, on the Chinese adventure and pulled the plug on all operations in China as the Sunlu company has been made bankrupt.

However the executives of Fonterra have gone into damage control in New Zealand, over the plea in court on Wednesday 31 December by the CEO.For months both Fonterra and Sunlo have pleaded innocence, in regard to the use of melamine, this development paints a whole different picture