HONG KONG, Aug 5 (Reuters Breakingviews) - New Zealand's dairy scare has exposed its dependence on milk. A warning about contaminated products at Fonterra, the country's largest producer, has triggered recalls and temporary import bans around the world. The immediate fallout may be limited. But it's a reminder that, with milk generating a quarter of its exports, New Zealand remains vulnerable to food scares.
Even for consumers increasingly accustomed to food scandals, Fonterra's announcement that it had found bacteria that can cause botulism in some of its products was bound to cause concern. The problem was limited to only three batches of whey protein concentrate. But it is used in milk powder and sports drinks and that means contamination could be wide. China promptly banned imports of whey products from New Zealand, and milk powder makers are holding recalls.