Milk scare latest-- Fonterra apologizes

INTRO

First, the latest development of the contaminated milk scare.

The CEO of New Zealand's dairy giant Fonterra, which's at the center of the scandal, has apologized to Chinese consumers.

But the company has denied accusations it delayed releasing information.

PKG

On Monday, Fonterra's CEO Theo Spierings held a press conference in the Chinese capital Beijing. He said, quote:

"We deeply apologize to the people who have been affected. We totally understand the concern among parents. They have a right to know that food is safe. We had informed customers and the authorities within 24 hours of confirming the problem."

The company said at the weekend that it found bacteria that could cause food poisoning in some products. Some of the contaminated whey protein concentrate had been sold to a number of countries including China. The material was used in products including infant milk powder and sports drinks.

The dairy scare has put New Zealand's clean, green image under scrutiny.

The government is taking actions to contain the reputation crisis.

During a press conference on Monday, New Zealand's Prime Minister John Key said his government is deeply concerned.

In response to a question by our correspondent on what he'd like to say to Chinese consumers, the premier said this...

SOUNDBITE (ENGLISH) JOHN KEY, New Zealand Prime Minister:

"Well we have a long history proven we produce products which are safe. And our consumers have a rare confidence...."

The prime minister has also promised a thorough investigation.