News Summary: Scare shows NZ reliance on Fonterra

Botulism scare highlights New Zealand's reliance on a dairy company that's too big to fail

Associated Press

BIG DAIRY: When dirty pipes at a rural New Zealand milk factory put the entire nation on high alert, it was an unsettling reminder for many New Zealanders that their prosperity is tied to a single company.

THE SCARE: The company, dairy giant Fonterra, on Saturday announced that the unsanitary pipes had tainted some of the whey concentrate it sells for use in infant formula with a type of bacteria that can cause botulism.

THE BACKGROUND: Fonterra's annual revenue of $16 billion is equivalent to 10 percent of New Zealand's economy, meaning everyone from farmers to homeowners were left holding their breath over its dirty piping.

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