NZ: Fonterra blindsided as nineteen arrested in China over milk powder scam

New Zealand- fonterraFonterra blindsided as nineteen arrested in China over milk powder scam

Fonterra says it does not know if anyone has fallen ill from consuming its expired milk powder, as the NZ dairy giant tries to come to terms with the latest scandal to engulf the Chinese food industry.

Chinese police on Monday (NZT) arrested 19 people in Shanghai for selling about 300 tonnes of expired Fonterra milk powder, Shanghai Daily reported.

The suspects were allegedly managing a company, which was packaging expired products of the New Zealand dairy company – one of the most popular brands in China – into smaller packages for resale below market prices, according to media reports.

Fonterra is reviewing its rules for milk powder resellers in China, after 19 people were arrested for on-selling milk powder that should have been thrown out.

After a months-long investigation, the police discovered that one of the suspects sold the expired products to another company, who in turn allegedly resold almost 200 tonnes to distributors in Shanghai and in the Jiangsu, Henan and Qinghai provinces, who sold them on e-commerce platforms or in wholesale.     [Read more and view videos]

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