Consumers losing confidence in Fonterra dairy products

Despite claims by Fonterra that none of its milk powder found in Sri Lanka with traces of the toxic chemical dicyandiamide made it into the Chinese market, Chinese consumers and experts are in uproar over the company's handling of its food safety problems.

On Sunday, the world's largest dairy exporter recalled its milk powder under the brand name Anchor on orders from the Sri Lankan government for containing small amounts of DCD. The company has challenged the government's test results of the batches, which entered the Sri Lankan market in March.

But concern quickly spread in China despite assurances by Fonterra. "The milk powder recalled in Sri Lanka never entered the Chinese mainland and all of (Fonterra's) products in the Chinese market are safe," said Zhang Yanshi, associate account director at HighTeam Marketing Communications, the public relations firm for Fonterra in China.