Sept 03, Colombo: Sri Lanka's retail market sources say that there is a severe shortage of locally produced milk powder in the market.
With the publicity over the milk powder brands imported from of New Zealand dairy producer Fonterra containing agrochemical dicyandiamide (DCD) and the suspicions of contaminated whey protein with bacteria causing botulism, the consumers have turned towards local milk powder brands.
The local milk powder producers reportedly do not have the sufficient capacity to produce the entire need of milk powder.
Health Ministry asked Fonterra to recall 39 metric tons of powdered milk from traders when the tests conducted by Sri Lanka's Industrial Technology Institute found high concentrations of DCD in samples taken from two batches of Fonterra's Anchor milk powder.
Fonterra announced on August 23 that it had decided to temporarily suspend the consumer operations in Sri Lanka as a precautionary measure and asked the workers to stay at home.
Managing Director of Fonterra Brands Lanka Leon Clement last week said that Fonterra would resume operations soon.
However, Sri Lanka's Court of Appeal yesterday extended an injunction against Fonterra publishing advertisements which say that the company's milk powder brands are 100% healthy.
The court extended the injunction until September 20 after considering the arguments of the petitioner's counsels that samples of all newly imported batches of milk powder have not been tested yet. The counsels also pointed out that the milk powder imported previously are also not in the market yet.