A2 Corporation drops legal action against Fonterra

NEW ZEALAND – The A2 Corporation has dropped its legal action against Fonterra, saying it wanted to end the feuding that has gone on between the companies over the last year.

In November 2002, A2 launched an action against Fonterra claiming that it tried to hide research proving a link between A1 milk and Asperger’s syndrome and autism.

This followed another action two years earlier to force Fonterra to put a health warning on all its standard liquid milk that contained the beta casein A1, which has been linked by some researchers to heart disease and childhood diabetes.

A2 chairman Jim Guthrie stated that the feud risked damaging the image and reputation of milk in general.

“I think we’re going to focus on making sure that we sell A2 milk at a premium price and that we don’t engage quite so confrontationally with Fonterra,” he said.