New Zealand firms see slump in China demand for infant formula after poison threat
By Naomi Tajitsu and Adam Jourdan WELLINGTON/SHANGHAI (Reuters) – Chinese demand for New Zealand infant formula has fallen after a threat by suspected environmental activists to contaminate the product with an agricultural poison, the head of an exporter group said on Wednesday. Orders for infant formula, prized among China’s growing middle class, have slumped after New Zealand police on Tuesday said letters were sent to the national farmers’ group and dairy giant Fonterra in November accompanied by packages of infant formula laced with poisonous pesticide 1080, formally called sodium fluoroacetate. Following the announcement, China said it would increase scrutiny of milk powder imports from New Zealand, which depends on dairy products for about a quarter of its export earnings.