Media outlets in New Zealand are reporting that Fonterra's chairman and board are being asked to resign after the dairy giant's latest food safety scare.
New Zealand's Fonterra Cooperative Group yesterday said a batch of fresh cream supplied to Anchor and Pams was contaminated with E coli and recalled 8700 bottles of the product.
Fonterra shareholder, Russ Rimmington is calling for the heads of Fonterra chairman John Wilson and board members because it's the second such recall in less than six months. Fonterra also recalled infant formula and sports drinks feared to contain botulism-causing bacterium last August.
"Some heads have to roll, these board members should look to their future," Mr Rimmington told nzfarmer.co.nz. Rimmington, who has twice failed to be elected onto the board, said that "John Wilson should resign forthwith, no question of that, and the other characters are bagging $200,000 a year for what?
"Food safety and risk management must be their highest priority. . . It's hitting our brand, not just Fonterra but New Zealand Inc, and Danone is an example of that."
French food group Danone last week said that it intends to sue New Zealand's Fonterra Cooperative Group, as well as cancel the supply contract that exists between the two companies, because of last year's product recall over a contamination scare involving baby formula.
© 2014 - European Supermarket Magazine by Enda Dowling
