WELLINGTON: French dairy giant Danone said it will sue New Zealand farming cooperative Fonterra for compensation over a botulism scare last year that forced global recalls of baby formula.
Danone said the scare last August, which turned out to be a false alarm, had harmed the company and it was launching legal action seeking redress in the New Zealand High Court.
“This affair illustrates serious failings on Fonterra’s part in applying the quality standards required in the food industry,” Danone said in a statement issued by its Paris head office.
Danone did not reveal how much compensation it wanted, saying the figure was a matter for the courts to determine. Howeer, the company estimated late last year that the crisis had cost it 300 million euros ($407 million).
The company also said it had canceled its supply contract with Fonterra, a grouping of about 13,000 New Zealand farmers that accounts for about a third of the world’s dairy exports.
It did not say how much the supply contract was worth.
Fonterra said it will “vigorously defend” the legal action and was disappointed Danone had abandoned commercial discussions in favor of going to the courts.
“Fonterra stands by its track record of having world-class food safety and quality standards, quality systems, and robust testing regimes across all its manufacturing facilities,” it said in a statement.
Fonterra has denied any legal liability for Danone’s losses and said in its 2013 accounts released in September that it had set aside just NZ$14 million ($11.6 million) to cover any claims arising from the crisis.
The scare erupted in August when Fonterra announced a whey protein used in baby formula and some other products had tested positive for a bacteria linked to botulism, which can cause paralysis or death.
The scare led to infant formula being pulled off shelves from China to Saudi Arabia before subsequent tests determined the bug was actually another, non-toxic, bacteria strain.
Most of the recalled formula tins were Danone brands, although US-based Abbott Laboratories also recalled product in parts of Asia, estimating in September that the disruption would cost it $90 million in the final quarter of 2013.
Abbott has not announced any legal action against Fonterra.
The episode dented New Zealand’s reputation for producing the gold-standard formula that commands top prices in lucrative Asian markets.
It also revived memories of a 2008 scandal when six children died and another 300,000 fell ill in China after a local company part-owned by Fonterra illegally laced milk with the chemical melamine.
Danone seeks Fonterra compensation over botulism scare
Danone seeks Fonterra compensation over botulism scare
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
