China increases scrutiny of New Zealand infant formula imports over 1080 threat
The Chinese General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) announced earlier today that in response to the threat it has strengthened the "inspection and supervision" of New Zealand milk powder exports to China
New Zealand Police yesterday announced they are investigating a threat - detailed in letters to Fonterra and Federated Farmers - to contaminate infant formula with 1080 in an "apparent protest" over its use as a pest control poison.
The Ministry for Primary Industries (MPI) insists, however, that New Zealand infant formula is "as safe today as it was before this threat was made."
Despite MPI's assurances, China has increased its scrutiny of powdered milk from New Zealand.
"China has already taken steps regarding New Zealand milk powder imports, and will demand every shipment has an official New Zealand certificate guaranteeing it does not contain sodium monofluoroacetate," said AQSIQ in a statement.
It added that its is encouraging Chinese consumers that purchase imported New Zealand infant formula to alert the Chinese Food and Drug Administration (CFDA) or police if packaging is "damaged or has pinholes."
Exports to China have, according to the New Zealand Infant Formula Exporters Association (NZIFEA), already been impacted by the 1080 threat.
Michael Barnett, chairman, NZIFEA, told ONE News that NZ$1.5m (US$1.08m, €1.02m) worth of New Zealand infant formula has been already been stopped at the Chinese border.
Speaking with Reuters, Barnett said that Chinese demand for New Zealand infant formula has also fallen.
"We've had our first response from the distribution network," he said. "They've reduced their orders, some of them by up to 70%."
NZX disclosure
The letters sent to Fonterra CEO, Theo Spierings, and Federated Farmers CEO, Graham Smith, in November 2014 contained a threat to contaminate formula products with 1080 unless New Zealand ended its use of the poison by the end of March.
Samples of milk powder sent with the letters tested positive for 1080.
Biodegradable 1080 is the salt form of fluoroacetate, a toxin found in several plants.
Pellets of 1080 are applied aerially in New Zealand to kill pests such as possums, which have been blamed for the spread of bovine tuberculosis.
Mike Clement, deputy commissioner, New Zealand Police, said yesterday that while "there is a possibility that this threat is a hoax" it must treated "seriously."
During a press conference today, Clement said it had intended to make the 1080 threat public next week.
It was, however, brought, forward when media caught wind of the issue.
Watch the latest updates on the police investigation, our 1080 testing & advice on feeding your baby #1080milkhttps://t.co/s6BNmxrpNM
— NZ Food Information (@NZfoodprotect) March 11, 2015The delay in notifying the New Zealand Exchange (NZX) has been particularly criticised.
Companies listed on NZX are required to disclose price sensitive information immediately.
NZX has, however, defended Fonterra, Synlait Milk, and the A2 Milk Company, who informed it of the threat ahead of the New Zealand Police announcement.
In a joint statement, NZX and the New Zealand Financial Markets Authority (FMA) said the "release of the related announcements yesterday was appropriate, particularly given the unusual circumstances."
"NZX and the FMA consider that although the alleged threat was treated at all times as genuine by MPI and the NZ Police, the nature of the information was maintained in confidence and not sufficiently definite to require earlier disclosure by potentially affected issuers under the NZX Rules."
