PM questions Fonterra's response

A Chinese court on Thursday sentenced to death cattle farmer Zhang Yujun, 40, and milk trader Geng Jinping for the scandal, which also left hundreds of thousands of infants ill.

The contaminated milk powder was produced by Sanlu, a company 43 percent owned by Fonterra, which has now written off its $200 million investment.

Fonterra chief executive Andrew Ferrier took two days to voice a public view on the sentences.

The chairwoman of Fonterra's Sanlu venture, Tian Wenhua, 66, will also spend the rest of her life behind bars as well as being fined 24.7 million yuan (NZ$5.6m).

She learned of problems with her company's BeiBei milkpowder from consumer complaints around mid-May of last year but the company did not stop producing and selling formula until about September 11.

Today, Mr Key told TV One's Breakfast show Fonterra – New Zealand's biggest company – was in a difficult position over the scandal.

"It's not just the quarter of a billion of dollars they've lost – we need to put this in perspective; six infants died, 300,000 infants have been affected by this melamine (tainted) milk.

"Fonterra did not have control of the vertical production chain, in other words they were making the milk powder not the supply of the milk, so it was a difficult position and they did not know until quite late in the piece.

"Nevertheless they probably could front more for this sort of thing."

Fonterra said on Saturday it accepted the verdicts, but not the death sentences imposed.

"We have been shocked and disturbed by the information that has come to hand as a result of the judicial process," Mr Ferrier said.

"Fonterra deeply regrets the harm and pain this tragedy has caused so many Chinese families."

He reiterated Fonterra had no knowledge of the criminal actions taken by those involved.

"We certainly would never have approved of these actions," he said.

"I am appalled that the four individuals deliberately released product containing melamine.

"These actions were never reported to the Sanlu Board and fundamentally go against the ethics and values of Fonterra."

Mr Key said New Zealand opposed the death penalties.

Amnesty International criticised the decision to execute the men and raised concerns about New Zealand's implication in the scandal.

"The death penalty will not put right the immense suffering caused by these men," Amnesty New Zealand chief executive Patrick Holmes said.

"The death penalty is the ultimate, cruel and inhumane punishment and New Zealand must take a stand to prevent further abuses of human rights."

A third man, Gao Junjie, was given a death sentence for endangering public safety, but it was suspended for two years, and may be commuted to life in prison.

- NZPA