Fonterra's NZ Milk Products chief resigns

Fonterra has announced that Gary Romano, the dairy company's managing director of NZ Milk Products - the business unit responsible for the whey protein botulism scare - resigned today with immediate effect.

Fonterra chief executive, Theo Spierings, said he has accepted Mr Romano’s resignation.

“Gary has made a significant contribution during his time at Fonterra and we respect his decision,” Spierings said.

Spierings will assume interim responsibility for the day-to-day operations of NZ Milk Products.

Earlier this month, Fonterra announced that three batches of a particular type of whey protein concentrate (WPC80) produced at one of its New Zealand manufacturing sites in May 2012 contained a strain of Clostridium that could cause botulism.

Three food companies, two beverage companies and three companies that manufacture animal stock feed, received the affected product, either as a base product or as a finished product manufactured by Fonterra using the affected WPC80 as an ingredient.

Danone recalled two of its Nutricia Karicare infant milk formula products in the New Zealand market.

Though Australia's exposure to contaminated whey protein was restricted to animal feed, Chinese authorities had temporarily suspended importation of whey powder and dairy base powder produced by Fonterra, or produced in Australia using Fonterra’s whey protein powder as an ingredient.