By Rebecca Howard
WELLINGTON, New Zealand--Fonterra Co-operative Group Ltd.
(FCG.NZ) said Friday that two senior managers have been placed on
leave, effective immediately.
The move comes after 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.
Both the New Zealand government and the company are conducting
investigations to determine what happened and to evaluate how the
situation was handled.
"We are moving quickly and establishing key facts about what has
happened and, as they emerge, we are taking appropriate action,"
Fonterra Chief Executive Theo Spierings said Friday. He did not
name the two managers. The move follows the resignation this week
of Gary Romano, its managing director of New Zealand Milk
Products.
Fonterra produced the whey protein concentrate in New Zealand
for use in infant formula and other products in May 2012. The issue
wasn't identified until March and intensive testing was then
carried out to isolate the specific bacteria. On July 31 tests
indicated that the potential presence of Clostridium botulinum,
which can cause botulism. The announcement on Aug. 2 led to product
recalls in various countries. There were no reported cases of
illness.
Write to Rebecca Howard at rebecca.howard@wsj.com