WELLINGTON (Reuters) - New Zealand-based dairy giant Fonterra Co-operative Ltd said on Sunday it had withdrawn milk powder under orders from the Sri Lankan authorities for showing traces of the toxic agricultural chemical dicyandiamide (DCD), although it disputed the accuracy of the testing.
It said two batches of milk powder had been removed from shops last month after Sri Lanka's Ministry of Health had said they tested positive for DCD, a nitrate inhibitor used in fertilisers. Sri Lanka also imposed a ban on advertising by Fonterra's Anchor powder brand.
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