Fonterra, the largest company in New Zealand, has issued a warning that some of products used in infant formula and sports drink may have the bacteria Clostridium Botulinum that could cause the deadly botulism.

On Wednesday, Fonterra said tests indicated the presence of the bacteria on a whey concentrate sample. On Saturday, the dairy giant advised eight of its customers that three batches of the whey protein concentrate have the bacteria.

However, Fonterra has refused to name the eight companies.

One of the raw materials used to produce the sport drink was manufactured at Fonterra's Hautapu plant in Waikato. Gary Romano, managing director of NZ Milk Products, disclosed that 38 tonnes of whey protein affected by the contamination was produced in May 2012 caused by a dirty pipe.

The bacteria were found in three batches of whey protein, a product used in many types of food produced, including baby formula and sports drinks. The bacteria could cause botulism, one of the most dangerous forms of food poisoning that could lead to paralysis and cause people to stop breathing.

"For this reason, we immediately contacted our customers and the appropriate authorities, so that any potentially affected product could be removed from the market place," Mr Romano said in a statement.

Since Fonterra exports its various dairy products and raw materials, the company is now on a damage control mode. Theo Spierings, CEO of Fonterra, will go to China to meet with companies that use the raw materials produced by Fonterra.

However, Mr Romano said that Fonterra-branded dairy products such as fresh milk, yoghurt, cheese, spreads and UHT milk products are not affected by the contamination.

He stressed that Fonterra-labelled products are not those being investigated for contamination of the bacteria, but third-party manufacturers that use the tainted raw materials.

If there would be any consumer products recall, it would be initiated by the respective food companies, he said,

Fonterra said that are no reports, so far, of any illness due to the consumption of the affected products.

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