KEY POINTS:
The Warehouse has taken four types of confectionery and biscuits imported from China off its shelves because of the tainted milk scandal in China.
The company said yesterday that the four products - a chocolate rose, children's wafer biscuits, a novelty sweet and bagged sweets - contained
milk and would therefore not be sold.
This follows the finding of "unacceptable levels" of melamine in White Rabbit Creamy Candy by the New Zealand Food Safety Authority, which resulted in its manufacturer, Guanshengyuan, announcing yesterday that it would be halting sales and exports of one of China's best-known lollies.
At least four babies have died and nearly 54,000 Chinese children sought medical care with 13,000 hospitalised since reports that milk formula from San Lu, which is partly owned by Fonterra, had caused babies to develop kidney stones.
Chinese media reported this week that the practice of adding melamine to milk in China was "well-known" in the industry, dating back to early 2005 - and alarm was raised several times before the scandal was made public.
Fonterra has three directors sitting on the San Lu board but it said they did not have a clue about the company's tainted milk until a board meeting on August 2.
Directors Bob Major and Mandarin-speaking Patrick Kwok are stationed in China and are actively involved in San Lu's operations, and Mark Wilson, who works throughout Asia, is based in Hong Kong.
Fonterra refused to say yesterday if it was conducting an investigation into how much the directors knew about the melamine practice before August 2.
Chinese authorities said San Lu received complaints about its infant formula in December 2000. Hebei's vice-governor, Yang Chongyong, said adding melamine to artificially boost the protein content of raw milk started as early as April 2005.
The official Xinhua news agency said San Lu received a consumer's complaint online in June about children getting sick from its product. It said San Lu bribed the consumer with about 2000 yuan ($360) worth of milk products to delete his postings.
A month later paediatric urologist Feng Dongchuan raised concerns about an "unusually high number" of infants he had treated for kidney stones at the paediatric hospital in the central city of Xuzhou, and posted his concerns on his online journal, noting more cases in nearby Nanjing.
And San Lu was named in July by another urologist who sent a warning to the General Administration of Quality Supervision, Inspection and Quarantine.
China Central Television said San Lu knew in June that tests had detected melamine.
Off the shelves
* Cherir I Love You Choco Rose.
* Oreo wafer sticks 10 pack.
* Au Some mini frooze pop with sauce (apple, caramel, strawberry, chocolate).
* Mr Mallow party pack.
