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Fonterra suspends operations in SL

23 August 2013 03:57 am - 44     - {{hitsCtrl.values.hits}}


Fonterra has temporarily suspended its consumer operations in Sri Lanka blaming the current ''unstable situation'' for the company.

Chief executive Theo Spierings said the move was to ensure Fonterra's 755 staff in Sri Lanka are ''safe'' and to secure the company's assets.

It comes as Fonterra Sri Lanka is subject to a court ''enjoining order'' which Spierings said had shut down the company's ability to sell product, advertise it or make public statements in any way with customers or consumers in Sri Lanka.

Legal action is underway aimed at resolving the order, Spierings said.

"The temporary suspension is the right thing to do.  It is a precautionary measure to ensure our 755 people working there are safe.   We have closed our plants and office in Sri Lanka, and have asked our people to stay at home.

"At the same time, we must do all that we can to protect our farmer shareholders' investment in Fonterra's Sri Lanka manufacturing and commercial operations."

Spierings said Fonterra has provided every possible assurance to the Sri Lankan authorities about the safety and quality of Fonterra's products, and remains committed to the Sri Lankan people.

"Recent events, however, have made it difficult to maintain day-to-day operations, and we need to get them resolved.

"We are also working with Sri Lankan and New Zealand government authorities on a long-term sustainable solution for our Sri Lankan customers, communities and dairy sector," said Spierings.

Sri Lanka is a key markets for the New Zealand dairy industry which has been providing dairy products to the country for more than 35 years.

Spierings said Fonterra also played an important role in helping develop the local dairy industry.  Earlier this year the co-operative launched a farmer training and education programme to help develop dairy farming skills in Sri Lanka. (Fairfax NZ News)

  Comments - 44

  • angi Saturday, 24 August 2013 12:50 AM

    Thanks a lot fontera ,Pls don not come again .We can live without
    Newzealnd milk.

    LonwaboTsotsobe Friday, 23 August 2013 10:13 AM

    reading these comments I kinda feel the fonterra employees have started to worry about their jobs and started to comment here. Relax guys... I hear kotmale is expanding they might hire you.

    seen this all bfore Friday, 23 August 2013 10:27 AM

    first hysterics,then shakedown,then back to normal...that's how this govt works

    Maha Rajanani Friday, 23 August 2013 10:31 AM

    Why not?

    Maha Rajanani Friday, 23 August 2013 10:33 AM

    This is a blessing for local farmers and SL population as a whole.
    Why drink powder when liquid is Locally available fresh?.

    Nishantha Friday, 23 August 2013 11:16 AM

    They are giving commissions to the big shots....!

    Yehiya Friday, 23 August 2013 11:24 AM

    Who voted to this fool members will suffer in future, we may loose all future foreign investment.

    Citizen Friday, 23 August 2013 05:25 PM

    Even Nestle depend on fonterra

    Rednaxa Friday, 23 August 2013 05:33 PM

    Very soon they will plan to get 10% from breast milk also if Fonterra won't give them the commission. May the Brothers Company rot in hell.

    Gayan Friday, 23 August 2013 05:47 PM

    There is no "investment" by these companies. These are just imports. Money goes out for imports, where as money comes in for investments.

    Ruhunu Kolla Friday, 23 August 2013 11:43 PM

    If some other country says our tea is contaminated with agro chemicals , OMG !

    Lakmal Friday, 23 August 2013 10:11 AM

    would like to know the source of your information "Powdered milk consumption is directly connected with diabetes and heart attacks." and does this apply only to imported milk powder ? moving to fresh milk is no doubt a good thing but would you think that Sri Lanka is self sufficient with fresh milk ?

    praba Saturday, 24 August 2013 01:26 AM

    Milk is not essential for life. Many school children are malnourished not because they don't drink milk but as they don't eat a balanced diet.

    Gamini Saturday, 24 August 2013 01:29 AM

    Ban importing milk powder and allow casinos.

    Always Saturday, 24 August 2013 12:00 AM

    If we write againts gov. then only it would appear here.. Many people thinks Newzaland is country who run our economy via DM Android App

    Rohan Saturday, 24 August 2013 02:54 AM

    Anoj.. do you know the price of a bottle of fresh milk? have you consumed on a regular basis? is it freely available across the country?

    captain Saturday, 24 August 2013 12:00 AM

    No wonder some of the global brands and foreign investors don't invest in Sri Lanka, with this worst government tactics, no future plans for the country I don't c we are going far, Next election campaign should be on "CHANGE"

    Das Saturday, 24 August 2013 09:07 AM

    Grown ups don't need milk. stop crying and find herbs that are healthy also.people die early now because of these poisons in food and water. this is not funny, unite and find a way if you want to live.

    MbinM Saturday, 24 August 2013 10:33 AM

    we will feel when we suffer...

    Bassa Saturday, 24 August 2013 11:44 AM

    I am sure it's going to be 'Amul' from India

    Saman Saturday, 24 August 2013 01:40 PM

    Yes you can live eating Punnakku and Grass.

    Dee Sunday, 25 August 2013 01:54 AM

    fresh milk? from where?

    chula Friday, 23 August 2013 04:59 AM

    Sunil wicramarasighe former Nestle APAC head and now Milco chairman says that sri lanka can be self sufficiant with dairy needs thats the way to go

    Satchi Friday, 23 August 2013 04:12 AM

    Fonterra should be advivsed whom to contact and how much to pay so that product could be sold. Pay the commission which in their country they are not used to

    David Friday, 23 August 2013 04:18 AM

    Pl. Close down Fonterra permanently. We don't need you guys for evr.

    Dav Friday, 23 August 2013 04:24 AM

    then bro, we need to close highland also, since it also depends on fonterra milk powder !

    TM Friday, 23 August 2013 04:24 AM

    This is the typical Banana republic! and good lesson for other investors show way the hardliners rule this country.

    saman Friday, 23 August 2013 04:32 AM

    TM, don't just look at everythign wearing anti-govt glasses. am a strong critic of thsi govt, but this is one thing right. And I wonder if this isto evade the consiquences they may face or have to face through a legal trial. they should be fined at least 100 bn rupees.

    Seriously Friday, 23 August 2013 04:36 AM

    How about Luxpray? That milk is also from New Zealand

    Sam Friday, 23 August 2013 04:42 AM

    Shows real Sri Lankan values ro the world.

    janmanjanmanj Friday, 23 August 2013 04:54 AM

    It seems to be that we are producing our milk powder enough to feed the country.Today I heard a news that we must export our rice also because there are plenty of paddy lying in warehouses .May be we have to export our big onions also.We are selfsufficient from everything.Well done

    Srilankan Friday, 23 August 2013 04:55 AM

    What next? Mihin Kiri plant da?

    Security Friday, 23 August 2013 04:56 AM

    Wimal must be happy now.. I wonder if the kings are planning to put up a new milk factory.

    Goofy Friday, 23 August 2013 04:08 AM

    Now Sri Lanka is losing international conglomerates due to poor policies local and international. This will lead to further isolation from the international community. It is the masses that will suffer in the end.

    mohan Friday, 23 August 2013 05:02 AM

    Give my son a share stake and then open for operations thats the idea :)

    Anoj Friday, 23 August 2013 05:33 AM

    There is no connection in isolating in so called international community and this,
    It is high time to switch to fresh milk. We should aim on the health of the whole population, not the benefit of a conglomerate!
    Don't just be their mouth piece.Powdered milk consumption is directly connected with diabetes and heart attacks.
    If you love your family switch to fresh milk, if you don't care be their mouthpiece!

    No Hope Friday, 23 August 2013 05:39 AM


    Narayan Friday, 23 August 2013 05:40 AM

    In Jaffna people say that some big shot in the government asked for a commission or partnership in Fonterra which they apparently denied. So the big shots make all these fuss about their business.

    Narayan Friday, 23 August 2013 05:41 AM

    And you need more foreign direct investments. Republic in the ruins.

    Suq Madique Friday, 23 August 2013 06:02 AM

    Soon to enter the market......... Carlton milk products

    HHH Friday, 23 August 2013 06:02 AM

    This is not a good example to other investors of the country. this country is going to be a big mess with these stupid decisions of Government Authorities.

    satchi Friday, 23 August 2013 06:58 AM

    Guys please note Fonterra is not only doing with Sri Lanka it is dealing with all countries. Since beginning of this episode their price hasn't dropped internationally. Remember they do this business with for 35 yrs. Have you ever had any problem in the past. DCD was found in two consignment only. This is country imported adulterated fuel for their people. Do you believe all other products being imported are clean

    Don ranil Friday, 23 August 2013 08:36 AM

    What about Ajinomoto?

    king ping Friday, 23 August 2013 08:43 AM

    Don't worry guys, Miihin Tera Milk coming soon

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