By Rebecca Howard
WELLINGTON, New Zealand--Fonterra Co-operative Group Ltd.
(FCG.NZ) Monday said it refutes a temporary injunction to prevent
it from selling products in Sri Lanka.
According to Fonterra, the injunction prevents Fonterra from
selling and advertising its products in Sri Lanka for the next 14
days.
Fonterra earlier this month warned that three batches of one of
its dairy products, whey protein concentrate, might contain harmful
bacteria, which led countries like China and Russia to ban some of
its milk products.
A Sri Lankan court Friday reportedly ordered the two-week
suspension pending investigations into allegations of contamination
related to the bacteria and a toxic chemical called dicyandiamide
or DCD.
In January, Fonterra acknowledged that traces of DCD had been
found in milk powder late last year. The chemical has been banned
for use in fertilizers.
Johan Priem, Fonterra's managing director for Asia Pacific,
Middle East and Africa said, "We strongly refute the allegations on
which this injunction has been made. Our independent testing has
found no traces of DCD in any Fonterra branded products in Sri
Lanka and no affected whey protein concentrate or products
containing it have been sent to the country."
Write to Rebecca Howard at rebecca.howard@wsj.com