NZ dairy giant Fonterra facing new milk scare in Sri Lanka
COLOMBO (AFP) - New Zealand dairy giant Fonterra, already under pressure over a global botulism scare, is facing fresh trouble over milk powder in Sri Lanka allegedly mixed with a farm chemical.
The company said on Saturday it had completed a recall of two batches of milk powder under Sri Lankan government orders because of allegations it contained traces of the chemical Dicyandiamide, or DCD, which is added to pastures to increase agricultural yields.
A New Zealand government website says DCD is not toxic and poses no food safety risk but adds that international regulators are likely to view DCD residues as a "contaminant".
However, Sri Lanka's Health Ministry said it considers DCD to be a "toxic chemical" that should not be in milk and that is why it ordered the recall, spokesman Dharma Wanninayake told AFP.