AN IRISH cheese-manufacturing company has claimed it is facing losses of more than €10 million because it was supplied with a defective rennet made by a Dutch company, resulting in cheese with a "soapy aftertaste and an off- flavour".
Carbery Milk Products Ltd, Baillineen, Co Cork, has brought its action against Carbon Chemicals Group Ltd, with registered offices at Ringaskiddy, Co Cork, which supplies food ingredients for use in food manufacturing, and against DSM Food Specialities BV, with registered offices at Delft, The Netherlands, which makes food ingredients.
In admitting the action to the Commercial Court yesterday, Mr Justice Peter Kelly said the real issue in the case was whether the rennet supplied to Carbery was defective.
Carbery claims it reached an agreement with Carbon Chemicals on March 5th last to purchase rennet manufactured by DSM under the brand name Fromase 220XL. It claims certain batches of Fromase 220XL supplied to it between January 12th, 2008, and September 25th, 2008, were defective.
It is claimed certain batches were contaminated with an excessive level of the enzyme lipase and that as a result, cheese made by Carbery using the affected batches had an "off-flavour and a soapy aftertaste" and were unfit for supply to customers.
Carbery claims Carbon Chemicals was required to provide rennet suitable to use in the manufacture of cheese and, in its claim against the Dutch company, alleges it owed a duty to Carbery to take reasonable care to protect Carbery from a risk of danger of which the company knew, or ought to have known.
In its action, Carbery claims a "very significant" quantity of cheese manufactured by it was contaminated as a result of the allegedly defective rennet. It claims it was notified by Carbon Chemicals in September last of a "possible issue" with certain batches of Fromase 220XL.
Carbery also claims it fears that because of the contamination, the Irish Dairy Board, which purchases cheese from Carbery, will not pay it for cheese already supplied. It says the cheese was sold at full market value before the problem was detected.
It also says it was the exclusive supplier of low-fat cheese to the Irish Dairy Board and believed that exclusivity had now been lost as a result of the actions of the defendants.
While much of the affected cheese has subsequently been quarantined and is being stored by customers, a portion of it has been processed, the company said.
Some of the cheese was sold under the Tesco Carbery sub-brand and that brand will lose market share, the company also said. A sub-brand just launched with Asda would also suffer.
