The issue of accountability

The news that Danone is litigating against Fonterra and ending its supply contract with the New Zealand dairy giant is enough to give many people pause in the dairy industry. Two of the largest, most trusted companies in the world are gearing up to go against each other in a court of law, over the false alert by Fonterra back in August.

It does go to show that for many companies, the reputation they have with consumers is the most important one to maintain, and impingement on that reputation can cause monetary losses and hardship. It is a difficult place to be ­ if you recall products and it turns out to be a false alarm, your customer can lose money and face. If it turns out to be the truth, a recall can limit the damage.

This will be an interesting case to watch, and one that will have repercussions for not only the dairy industry, but the food industry as a whole.