Fonterra launches internal probe into expired milk powder scam in China

Chinese authorities seized 1.1 tons (100 tonnes) of the repackaged expired milk powder products manufactured by Fonterra and have shut down the websites selling them, according to Shanghai Daily.

The arrested suspects were reported by the New Zealand Herald to be part of a company based in China, which was repackaging expired Fonterra products into smaller packaging for resale below market prices, Shanghai Daily reported.

Fonterra spokeswoman Maree Wilson said none of the people arrested were Fonterra employees or associated with the company, but said that the company condemns the illegal business activity.

After a months-long investigation, the police discovered that one of the suspects arrested sold the expired products to another company, who allegedly resold nearly 220.5 tons (200 tonnes) to distributors in Shanghai and in the Jiangsu, Henan, and Qinghai provinces, who then sold them on e-commerce platforms or in the wholesale market.