Yashili International's plans to build a $210 million milk processing plant in Waikato continues a major shift in its business model after the deadly 2008 melamine scandal.
Fonterra Co-operative Group says it is sceptical of the legal foundation for a claim against the company at the Hong Kong Small Claims Tribunal over the melamine poisoning debacle in China.
It said that tribunal had adjourned until May 25 a claim against a Fonterra company, requiring the claimants to provide some evidence in support of their claim.
Frustrated by their inability to get compensation in China, four parents whose children were poisoned in the country's tainted milk scandal took their cases to Hong Kong on Tuesday, Associated Press reported.
Chinese consumers are once again running scared after two case of melamine contaminated milk surfaced in December.
As a result, imports of milk powder are increasing.
Melamine, a chemical used to plastics and fertilisers, was detected twice in cases of product twice last month, but reports from China suggest the contamination could have began as early as the beginning of 2009.
Chinese imports of milk power was expected to increase by nearly a third this month to 40,000 tonnes as consumers turn to foreign product.
Fonterra is obligated to condemn the execution of two people involved in the San Lu milk powder scandal, Amnesty International says.
But Fonterra said the executions were a matter for the Chinese Authorities. A spokesman distanced the company from the now bankrupt San Lu [which it had a 43% stake in].
Chinese imports of fresh and processed dairy products from New Zealand and Australia rocketed following the melamine contaminated infant milk formula scandal in China last year, but now officials want to put the brakes on.
Importers will now have to apply for permits from the Chinese commerce ministry from next month in a move to monitor the rising level of imports.
New Zealand dairy giant Fonterra was involved in the contamination issue as part owner of Chinese dairy products producer Sanlu.
The parents of the first baby to die from drinking poisonous milk formula produced by Fonterra’s now-bankrupt joint venture with Chinesedairy company Sanlu have accepted a cash payment of 200,000 yuan or roughly $NZ53,712 in return for giving up their right to sue over the scandal.
Yi Yongsheng and Jiao Hongfang are the first to receive compensation for a death related to the tainted milk after their six-month old son Yi Kaixuan died on May 1 2008 of kidney stones, Xinhua news agency reports.