Fonterra suspends Jiawai distribution agreement after milk powder fraud arrests

Wed, 26 Oct 2016

By Jonathan Underhill Oct. 26 (BusinessDesk) - Fonterra Cooperative Group has suspended a distribution agreement with China's Jiawai after Shanghai food safety officials and police announced the arrest of 19 people suspected of repackaging expired milk powder from New Zealand. Jiawai had been an authorised distributor in China for Fonterra since March but the product was believed to have been onsold by a former Jiawai employee prior to any contact with the New Zealand company, Fonterra said. The product had been in the resale market, havi...

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