Impact of milk scare 'limited' for NZ exports

Although some New Zealand exporters are worried that consumer concerns over contaminated milk powder from global dairy giant Fonterra Co-operative Group Ltd will mean declining sales to China, they may not feel a pinch, at least not in the long run.

China has banned tainted milk powder from New Zealand. Meanwhile, authorities in New Zealand are investigating the contamination scare to allay consumer fears in China, as they try to keep the issue from affecting trade overall.

The head of New Zealand's farming industry, Federated Farmers of New Zealand President Bruce Wills, issued an unconditional apology to Chinese consumers over the dairy issue and praised the Chinese government's reaction to the crisis, said the Xinhua News Agency.