Danone ends supply contract with Fonterra

Danone is terminating its existing supply contract with Fonterra and making any further collaboration contingent on a commitment by its supplier to full transparency and compliance with the food safety procedures applied to all products supplied to Danone. The French dairy giant says, “On 2 August 2013, Fonterra issued an alert concerning a possible contamination of certain ingredients supplied to Danone. Additional tests revealed later on that it was in fact a false alert.” According to the company, “This affair illustrates serious failings on Fonterra’s part in applying the quality standards required in the food industry.”

Danone is also starting proceedings in the New Zealand High Court, as well as arbitration proceedings in Singapore  “to bring all facts to light and to obtain compensation for the harm it has suffered,” the company states.