Milk Powder Solutions, an infant formula manufacturer in Melbourne’s south east, will fight a $4 million lawsuit claiming it was misleading about where it sources its milk.
Hong Feng Investments is suing the company, arguing it was told by a Milk Powder Solutions employee that its milk came entirely from the Tatura region in Victoria, when in actual fact the company sources predominantly from Australia, but occasionally from New Zealand too.
According to The Land, Simon Hansford, director of Milk Powder Solutions, said the employee – a clerical assistant and interpreter – was pointing out the seasonal implications of the dairy industry and claims the company never said it sources exclusively from the Tatura region.
Hansford's lawyer said Hong Feng’s claim has come almost six months after the dismissal of another claim made by the Chinese investors, with Hong Feng ordered by the South Australian District Court to pay Milk Powder Solutions’ costs.