New Zealand dairy company Fonterra on Friday temporarily halted operations in Sri Lanka after health authorities there found a toxic agricultural chemical in two batches of milk powder. Fonterra is already dealing with a botulism controversy in China that put New Zealand Prime Minister John Key in damage-control mode of assuring Chinese customers his government would investigate the issue and ensure that the company corrected it. A group of approximately 200 Sri Lankan demonstrators protested outside Fonterra’s Sri Lankan facilities on Thursday. The company said it suspended operations to protect the safety of its 755 employees. Fonterra has disputed Sri Lanka’s findings of two samples contaminated with the chemical dicyandiamide. Regardless, it recalled its Anchor full-cream milk powder and the Anchor 1+ milk powder for children. A district court in Sri Lanka had ordered Fonterra not to sell its products earlier in the week, but it lifted that order on Friday.
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