New Zealand dairy giant Fonterra Co said on Friday it had suspended operations after Sri Lanka is the world's largest dairy exporter faces in its milk products in the domestic product bans, court cases and angry demonstrations.
Earlier this week, Sri Lanka court to prohibit the sale or promotion of their products, the country's food safety authorities said they found high levels of agricultural chemicals dicyandiamide (DCD) of the two batches of milk powder tests. Fonterra company vigorously disputes discovery.
Fonterra four senior officials, has been accused of contempt of court failed to adhere to the ban, while a state research institute in Sri Lanka says it will test all of the milk on the market.
Thursday's debate triggered angry protests.
Fonterra's regional office near Colombo on the company's products, called for a ban on the country's riot police gathered outside watching the President Mahinda Rajipaksa ruling coalition hardline nationalist parties of more than 100 members.
"Temporary suspension is doing the right thing, it is a preventive measure to ensure that we have 755 people working safety," Chief Executive Theo Spierings said in a statement.
"Recent events, however, has been difficult to maintain the day to day operations, we need to resolve these issues."
Radio New Zealand said, he added, it is unclear when the operation will be restored in the country.
"We need to have a talk about the situation," Spierings said. "We need to be in the country as a partner for sustainable development, we need to have these discussions, we will continue our business."
Fonterra company in Sri Lanka on Friday, critics say the protests are ignored by the company legal rulings prompt.
"We did not ask Fonterra company closed down, we want to ensure that people of Sri Lanka, mainly children, do not DCD contaminated milk, said:" The shaman Rathnapriya, the National Health Service Alliance leader, the main petition to ban our products .
"Public protest could have been avoided if Fonterra to act in accordance with the Court's ruling, and to stop its distribution and misleading propaganda."
In Sri Lanka's actions follow a global food scare, Fonterra said that some of its products may contain bacteria that can cause botulism. Its products have been from the shelves around nine countries, including China, and other countries to restrict imports.
Fonterra circulation investment fund shares closed down 0.43 percent on Friday.
"Industrial politics"
Fonterra has a presence in Sri Lanka, about 50 years, and its anchor brand commanding national milk industry, 65% of the market share.
In New Zealand, Sri Lanka's action is widely regarded as a trick Fonterra pressured companies and to promote local dairy farmers.
"Clearly the industry politics, there, said:" Lincoln University professor Keith Woodford, farm management and agriculture. "There is no doubt that Sri Lanka would like to have their own dairy industry."
Sri Lanka is one of the top 10 New Zealand imports of dairy products, with about $ 19.6 billion accounted for approximately $ 300 million, from last year New Zealand imported milk powder. Most provided by Fonterra.
Milk powder exports to Sri Lanka, New Zealand's total dairy exports account for about 2% volume.
Sri Lanka has been trying to promote local fresh milk consumption in order to curb the increase in capital flows, countries and the viability of domestic farmers.



Other News:
Fonterra suspends Sri Lanka operations after milk powder protests
New Zealand law change bolsters spy agency powers
J.C. Penney posts big 2Q loss on falling sales
Asia stocks up on good China, Europe economic data
Glencore takes $7.7 billion hit on Xstrata assets as profit falls
Pentagon cuts F-35 operating estimate below $1 trillion
Egyptian authorities arrest Muslim Brotherhood leader
Asian shares flatline, fear more Fed confusion