New Zealand's Fonterra slashes value of Sanlu investment by 69%; China says Sanlu group knew of tainted milk months before alerting authorities; Sovereign Fund China Investment Corp. buys stock in Nation's biggest bank; Analysis by Gabriel Yap of DMG & Pa

http://news.powerapple.com/article/2008/0813/article_205100.html New Zealand dairy export giant Fonterra is being linked to a scandal in China over contaminated milk. One baby has died and more than 400 others are sick after drinking formula produced by a company partly owned by Fonterra. Chinese health ministry officials are fronting up to a baby food scandal. We will severely punish the criminals when the crimes are confirmed by the public security departments. In fact we have detained 19 suspects and summoned 78 people," says Yang Chongyong, deputy governor of Hebei province. Fonterra executives have known for weeks that the Sanlu Group's cheapest milkpowder for babies was contaminated with poisonous melamine. A least one baby has died and 432 are known to be sick.

Fonterra Toxic Milk Out of Control

leaving my last farm for the day, on my way back to the factory

Media7 examines Fonterra's role as a responsible corporate citizen, in the wake of the melamine milk debacle in China

Managing Director Fonterra Ingredients, Andrei Mikhalevski, comments after Fonterra named Supreme Award Winner at the 2008 AmCham-UPS Sucess & Innovation Awards in New Zealand.

Original song by New Zealand songwriter Dave Nash and his band, about milk giant Fonterra and greed.

Managing Director Fonterra Ingredients, Andrei Mikalevsky, collects the Investor of the Year Award at the 2008 AmCham-UPS Awards

Jeanette Fitzsimons wants milk to be affordable for all New Zealand families. Fonterra are invited to meet this challenge.

Fonterra says the Chinese milk contamination scandal will cost it at least $139 million. Announcing the company's annual results today, Fonterrra revealed the full impact on its Chinese partner San Lu of the controversy, which has left at least four infants dead after consuming baby formula containing melamine. Fonterra chairman Henry van der Heyden said: "We are certainly not putting the financial consequences ahead of our primary priority of consumer safety. We are focusing all our efforts on what Fonterra can best do to work with the Chinese authorities and help get safe dairy products to Chinese consumers." The $139 million estimate is made up of the cost of recalling products plus Fonterra's "anticipated loss of San Lu brand value". Fonterra has poured nearly $200 million into the joint venture since buying a 43 per cent stake in December 2005, but the investment has been gutted by last month's announcement that Sanlu has been selling poisonous infant formula for babies. This video is an edited Company Press release from Fonterra and published with permission granted to the New Zealand Herald.

Panel 1 Fonterra cuts forecast Slashes San Lu value Retains cash in turmoil Warren Buffett moves Buys into Goldman 10% interest rate Panel 2 Economic Pearl Harbour Buffett supports bailout Sees chaos if its not passed McCain suspends campaign To focus on bailout plan

Business Dec 17_ Fonterra and milk p.mp4

Fonterra payout injection (2_27).mp4

Christmas Party 2005 at Mandarin

Panel 1 Fonterra payout forecast Likely to be cut on Friday Down to NZ$6/kg or lower Currently NZ$6.60/kg Extend recession Panel 2 Infometrics forecast House prices down 13% Already down 8% US producer prices Fell 2.8% in October Biggest fall on record

Fonterra Milk Powder baby Death Toxic China Milk

The team in India -I

Fonterra Milk Powder baby Death Toxic China Milk Diploma

Fonterra Milk Powder baby Death Toxic China Milk

Our Xmas Do 2006 in Dunedin. Bizarre shirt's off time.

Had a superb time at one our team outings on 8th June 2007 @ Kithulagala, Sri Lanka

ANCHOR: An update on tainted Chinese milk to tell you about. At least 500 babies are becoming ill after drinking the product according to China's state-run media. Two babies have been killed in the northwest of the country as well. STORY: Authorities believe farmers or dealers supplying milk to the Sanlu brand may have diluted it with water and then added the chemical melamine. It's a chemical used in plastics, fertilizers and cleaning products. The infant milk powder, Sanlu, which is partly owned by New Zealand dairy giant Fonterra, was officially recalled last week. Fonterra blew the whistle on the tainted milk last week. New Zealand's prime minister claims the company was pushing for a recall for weeks from Chinese authorities, but met deaf ears. This is not the first time Chinese families, particularly in poorer areas, have been affected by toxic infant milk power. Back in 2004, at least 13 babies in the eastern province of Anhui died after drinking fake milk powder that investigators found had no nutritional value.

內地再有一名嬰兒飲用有毒奶粉後死亡，死亡個案增至三宗，患病的嬰幼兒就增至超過六千二百個. China says 6,244 babies are sick and 158 are suffering from acute kidney failure. Fonterra admits it never tested for melamine Health Minister Chen Zhu told a televised news conference that 6,244 babies had been sickened after being feed tainted milk formula, and that 158 were suffering from acute kidney failure. The General Administration of Quality Supervision, Inspection and Quarantine had already reported that its inspectors had found melamine "in 69 batches of milk powder manufactured by 22 companies". Three babies are dead and over 6000 have been poisoned, with Chinese officials spreading their net, ordering 22 Chinese companies to recall milk powder with traces of the poisonous chemical melamine.

http://www.interest.co.nz Panel 1 with this chart UN chief Ban Ki Moon Calls for end to food tariffs To improve food shortage Wants output doubled Criticised biofuels Panel 2 Greens want Fonterra subsidies Subsidies are wrong Make poor hungrier Genocide by remote control United Nations chief Ban Ki Moon Called on rich nations to drop farming subsidies and trade barriers Crisis summit on world food World Bank reckons higher food prices will push 100 million people into hunger Mr Ban reckons dealing with the food crisis could cost US$20 bln He thinks food supply needs to double by 2030 to solve world hunger Surprisingly he targeted subsidies and tariffs EU spends $62 billion a year on CAP US spends many billions more Mr Ban also criticized others such as China and Japan who have restricted exports Japan agreed to re-export 300,000 of exported rice Mr Ban criticized the shift in land use and food use into biofuels US plans to use quarter of maize crop for biofuels by 2022 Europe wants to get 10% of auto fuel from crops by 2020 Even in New Zealand, bastion of free trade, the Green Party has asked Fonterra to charge lower prices for milk in NZ than overseas, essentially a subsidy Lesson is subsidies and tariffs stop rich countries buying food from poor countries It also raises the price of food globally Subsidies incentivize the wrong type of production Subsidies and trade barriers cause starvation and poverty They need to be dropped Rich are protecting their farmers Allowing poor people to starve and keeping prices high for all European bureaucrats CAP and US food lobbyists and lawmakers are committing by remote control a slow, insidious form of genocide

Some of the countries biggest businesses are challenging the Government Climate Change Policy. The Government wants to become law later this year. Carter Holt Harvey, LandCorp, Fonterra are among the protest group who say that Labour's emission trading scheme needs to be more flexible.