Danone Asked Russian Minister to Take Back His Words on Non-dairy Fats in Milk Products

Published By : 02 Dec 2014 | Published By : QYRESEARCH

Danone (BN) has asked the agriculture minister of Russia to apologize for a statement in which he said that global dairy organizations are mixing plant oils in milk products, becoming the most recent western organization to clash with the regulators of the nation.

Nikolai Fedorov, the agriculture minister had said on November 28, 2014, that international dairy producers in Russia are using non-dairy fats instead of local raw milk in the manufacture of their products, creating problems local farmers. However, the Russian unit of Danone has said that the statement given is baseless.

Danone, in a statement issued on its website, has said that they make their products from pure, raw milk only. It also said that it makes only one product with vegetable fats that is manufactured by a third party and characterizes even less than 0.4% of its sales in the country. The company stated that the statement by the minister has deeply insulted the organization.

Danone took over Unimilk, a Russian dairy producer, in 2010. The acquisition resulted in Danone’s becoming the biggest company in the dairy market. As tensions have spread between Western countries and Russia, several companies such as McDonald’s Corp. are facing heavy scrutiny from local authorities. The largest restaurant in of McDonald’s in Moscow was shut for three months in 2014 amid inspections because of alleged disobedience of local sanitation rules.

According to the National Milk Producers’ Union, Danone and PepsiCo Inc. are the largest buyer of raw milk from Russian farmers. Danone has shut down three plants in Russia this year.
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