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Fonterra MD quits

Gary Romano, the managing director of New Zealand milk products at dairy giant Fonterra, has resigned, effective immediately.

Chief executive Theo Spierings will assume interim responsibility for the division's operations, Business Spectator reports.

The announcement comes after what's been a challenging couple of weeks for Fonterra, which recently issued a warning that an ingredient in its baby formula products and sports drinks could contain a bacterium that can cause botulism.

The Sri Lankan government has also recalled two batches of Fonterra's milk powder due to allegations the products had been contaminated with a farm chemical called Dicyandiamide.

Fonterra denies the presence of DCD in its milk powders, but was still forced to recall the products.

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