Fonterra ordered to pay Danone $183m over infant formula scare

Fonterra Cooperative Group has been ordered to pay 105 million euros ($183 million) in damages to Danone over "food safety failures" in 2013, following arbitration in Singapore.

In a statement, Danone said it "welcomes this arbitration decision as a guarantee that the lessons from the crisis will not be forgotten."

The French food giant sued Fonterra, seeking damages of up to 630 million euros, over the whey protein concentrate contamination in 2013.

Fonterra said it was now considering the financial implications of the claim.

Danone said the arbitration "underscores the merit of its legal actions against Fonterra, including to champion the highest standards of food safety across the industry. In April 2014, Fonterra had already been fined by judgment of the Wellington District Court for having breached several provisions of the New Zealand food safety regulations."

It said food companies and their suppliers "can only work together through a solid relationship based on trust, transparency, and accountability. Danone will continue to build that relationship with its suppliers across the world." Danone ceased doing business with Fonterra in the wake of the dispute.

More at NZ Herald.

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