Fonterra's international botulism scare could hand New Zealand's dairy exporting mantel to the Netherlands or Germany if not handled carefully, one Kiwi manufacturer warns.
The dairy giant is at the centre of an international safety scare after it revealed some of its whey contained the bacteria that can cause potentially fatal botulism.
China is blocking milk powder products exports while Russia has banned all New Zealand dairy product imports.
Nutricia Karicare has recalled two Karicare products while French-owned global dairy products manufacturer Danone has also issued a product recall.
Another New Zealand infant formula maker, Peak Nutrition, which has been unaffected by the scare, says the formula crisis could benefit the Netherlands and Germany, strong dairy nations that are well positioned to profit from the scare.
The company's chief executive, Stephen Julian, said the Dutch market had been "hot on our heels for a long time".
"They are renowned for their dairy production and have much to gain from our latest dairy crisis and Germany isn't far behind," Mr Julian said.
He said he sympathised with New Zealand parents who could suffer two-fold, through both the formula safety scare and the potential ongoing economic repercussions if the crisis is not resolved quickly.
Like others, Mr Julian was critical of Fonterra's "frustratingly slow release of information" to identify affected brands.
The exporter has so far revealed that UHT, yoghurt and soft drinks produced by Wahaha, Coca-Cola and Vitaco are all safe, despite being made using the contaminated powder.
Nutricia Karicare has recalled two baby products, Karicare Infant Formula Stage 1 and Karicare Gold+ Follow On Formula Stage 2, with advice parents should stop using both until further notice.
Small amounts of its NZAgbiz calf milk replacer, not made for human consumption, has also been recalled.
Competitor Synlait Milk has released a statement confirming all its dairy products, including infant formula, are unaffected.