SYDNEY (Yosefardi) – Nutrition leader Fonterra confirmed today that Danone has formally initiated legal proceedings, related to the whey protein concentrate precautionary recall initiated by Fonterra in August 2013.

“Fonterra has been in ongoing commercial discussions with Danone and is disappointed that they have resulted in legal action,” Fonterra, the farmer-owned NZ cooperative, said in a disclosure to ASX this morning.

Both Fonterra and Danone have operations in Indonesia, a fast growing market for nutritional products.

Fonterra is one of the largest processors of milk in the world, producing more than two million tons of dairy ingredients and consumer products per annum.