Arrest over NZ milk formula threat

The 60-year-old appeared in front of Judge David McNaughton at the Manukau District Court on Tuesday afternoon.

He had been in police custody since his arrest on Tuesday morning and appeared in the late afternoon as he met with his lawyer, Hugh Leabourn, for the first time.

The Auckland man faced two charges of attempted blackmail but his identity was suppressed by Judge McNaughton after submissions from Crown prosecutor Natalie Walker.

Her reasons for the suppression could not be published, and the interim order would last until at least April 2016, Judge McNaughton said.

As a result, all media applications to photograph and film the defendant were denied.

No pleas were entered and he was remanded in custody by consent for the next two weeks.

He was due back in court on October 28 when he is expected to plea to the charges.

In March, it was revealed that Fonterra and Federated Farmers received threatening letters last November, along with milk packages that tested positive for the poison.

The letters threatened to contaminate infant formula and other products if New Zealand did not cease to use the poison by the end of March. It also threatened to disclose the matter publicly.

1080 is widely used by the New Zealand Department of Conservation to control pests such as possums, rats and stoats.

Police Commissioner Mike Bush made the announcement of the man's arrest at an "urgent" press conference this afternoon.

The charges related to two letters sent to Fonterra and Federated Farmers.

At this stage police believed the accused allegedly acted alone, Bush said.

Police carried out search warrants in Rangitikei and Auckland.

Bush refused to disclose further details in relation to the accused and the investigation.

The investigation was one of the biggest carried out by police in recent years, costing more than $3 million and involving 35 full time, dedicated staff, Bush said.

More than 2600 people were considered as part of the police investigation, Operation Concord, with over 60 "significant persons of interest" approached for interviews, he said.

Traditional investigation methods were combined with testing of samples, as well as "innovative and new techniques".

Bush said the arrest was the result of a meticulous investigation and he repeated his thanks to the public for their help.

Prime Minister John Key welcomed the arrest.

The November 1080 threat was an extremely serious matter, he said, and the Government took it seriously because of the potential implications for families, and also New Zealand's international trading relations.

The 1080 scare was an issue which "worried the Government immensely".

"We always thought it was be highly likely it was a hoax, but with that potential of the person being out there, and therefore a remote risk that it could have been carried out, it's deeply worrying."

Key said the police had worked well on the case.

"The police I think ought to be congratulated; they've done a good job of staying on the case. It's been a very complicated case, as I understand it."

Key was made aware of movements in the case late last night, but he not received a full briefing.

He said the risk of copycat hoaxes had always been present with this case: "That was certainly one of the things that ministers considered. But hopefully we won't get that."

The charges, if proved, could lead to a significant jail sentence.

Key hoped that might be a deterrent for anyone considering making a similar threat.

Ministry of Primary Industries (MPI) chief executive Martyn Dunne said parents should be confident in the safety of infant formula.

New Zealand had a world class food safety system, he said, and "massive numbers" of testing regimes were put in place.

MPI and manufacturers had carried out 150,000 batch tests and retailers had worked hard to check stock had not been tampered with during the threat.

Testing was still being carried out by manufacturers but MPI and police believed there was no longer a threat to the public.

Dunne said he did not know exactly how much the operation had cost MPI. Manufacturers paid for a lot of their own testing.

However, there was no drop off in international trade due to clear and open communications with trade partners, he said.

"Fonterra is pleased to hear that an arrest has been made as part of the investigation into the criminal blackmail threat made public in March this year," Fonterra chief executive Theo Spierings said.

"We would like to thank MPI and the New Zealand police for their continued and exhaustive efforts on behalf of the New Zealand dairy industry, retailers and the general public.

"We'd also like to acknowledge the significant joint industry response to this threat."

Federated Farmers dairy spokesman Andrew Hoggard said the arrest was good news.

Massey University marketing professor Henry Chung said it would present a favourable image if New Zealand in markets where our food was sold because it showed the police had continued to pursue the case long after people had forgotten about it.

He praised the way in which authorities had dealt with the issue.

"We managed to minimise the risk; it was a very good case of risk management," Chung said.

He believed the scare may have damaged trade a little but New Zealand's reputation had recovered because of how the threat had been managed.

Forest and Bird spokesman Kevin Hackwell praised the police for putting in the resources to make an arrest.

He said it had not damaged the case for continued use of 1080 in pest poisoning operations.

"New Zealanders responded very calmly to it, indicative that the public understands that those who use it are very careful and take the appropriate precautions," Hackwell said.

Police Minister Michael Woodhouse said the investigation was one of the most significant in recent times.

"Today's arrest is a milestone in what has been a long and complex investigation over the past 11 months," he said.

Police had dedicated more than 30,000 staff hours to Operation Concord and Woodhouse thanked all those involved for their efforts.