Powdergate Conspirators Finally Fined

Andy VanceCompetition, Dairy Group, Export, International, Markets, Milk

Six New Zealanders have finally been fined for their roles in “Powdergate,” the multi-million dollar scandal involving export regulations and powdered milk. The six men in question admitted their roles in the scam, submitting to charges of producing false customs documents to export milk powder labeled as meat produce. The original charges were much more severe, originally handed down five years ago as conspiracy to defraud. In total, the six Kiwis were fined just $58,500.

The conspiracy stemmed from the state export monopoly New Zealand Dairy Board, which controlled dairy export markets for the island nation. The men broke regulations, exporting the dairy product under less tightly-regulated meat export laws. The legal team representing the accused submitted that the practice of repackaging milk powder to escape export regulations was commonplace.

The defendants were fairly bitter, noting that many of their colleagues involved in the unethical maneuvering are now well employed at Fonterra, the conglomerate formed from the merger of Kiwiw Cooperative Dairies, the New Zealand Dairy Group and the New Zealand Dairy Board.