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France's Lactalis Gets Go-Ahead To Reopen Plant After Tainted Milk Scandal

By Dayeeta Das
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French authorities have given dairy giant Lactalis permission to resume selling baby milk from a factory that was closed after salmonella-contaminated milk produced there infected dozens of babies, the government said on Tuesday.

Lactalis, one of the world’s largest dairy groups, had to recall 12 million tins in France and around the world because of the contamination, in a scandal that hit the reputation of France's agri-business industry.

"Conditions are now met to allow the sale of infant milk powder," the Agriculture Ministry said in a statement.

Reviving Production

The decision comes days after Lactalis agreed to buy the infant formula business of South African drugmaker Aspen Pharmacare for 12.9 billion rand (€750 million) in an effort to revive its baby milk expansion after the scandal.

Lactalis has carried out tests at the plant in the northwestern town of Craon for more than three months under the supervision of French health authorities, which will carry out regular, unannounced inspections at the plant in the future.

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Privately owned Lactalis, which has said the crisis could cost it hundreds of million of euros, had said that the production line linked to the contamination would be closed permanently but it was awaiting permission from French authorities to restart output at its other production line.

Lactalis could not immediately be reached for comment on Tuesday.

Foodwatch, a non-profit organisation that sued on behalf of victims, said the reopening of the factory is "hasty and unacceptable".

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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