Rural / Country

Sri Lanka ban worries farmers

14:34 pm on 19 August 2013

Farmers are concerned at what they say are the extraordinary developments in Sri Lanka which have seen Fonterra banned from selling or advertising its product for a fortnight.

A court injunction granted in Sri Lanka has put a temporary freeze on Fonterra's business as investigations continue in that country into the agrichemical dicyandiamide, or DCD, in New Zealand milk.

In a statement to the sharemarket, Fonterra says it refutes the allegations that its product is still contaminated with DCD.

It says its own testing had shown no DCD-laced product was for sale in Sri Lanka.

Federated Farmers president Bruce Wills says what's happening in Sri Lanka is mind-boggling.

"From a farmer's point of view it's worrying and frustrating," he says.

"I note that this temporary injunction to prevent selling products in Sri Lanka was brought by three individuals who work for a local union, so it's quite bizarre that these people have the power to bring to a halt advertising or selling for 14 days in a very important market."

Mr Wills says the situation is very disappointing.

"It certainly doesn't help Fonterra's reputation when this sort of nonsense goes on," he says.