One of the world's largest infant formula makers issues product recall over salmonella contamination. Nicole Hill / The National
One of the world's largest infant formula makers issues product recall over salmonella contamination. Nicole Hill / The National

UAE removes Lactalis baby milk after salmonella contamination



The UAE will remove Lactalis-made infant formula after the French company recalled products after cases of salmonella were reported.

The Abu Dhabi Food Control Authority as well as municipalities of the other six emirates are responsible for implementing the circular.

"The decision is based on the findings of a technical report following the warning issued by the French Directorate General of Health regarding the contamination of the infant milk, which had been exported to 30 countries including the UAE," the ministry said in a statement.

Lactalis, one of the world’s largest dairy producers, conducted further testing after its first recall on December 2, issuing a new purge of some of its products since February 15.

“Since December 1, the health authorities have brought to our attention a Salmonella Agona contamination, which has caused 26 infants to become sick,” Lactalis said in a statement, adding that the culprit seems to have stemmed from one of its drying towers during the first week in May. “The consumption of these products must therefore be stopped and replaced by a product of substitution.”

A company spokesman, Michel Nalet, told the AFP that nearly 7,000 tonnes of production may have been contaminated. The products being recalled include: Milumel Bio, Milumel Relais and Milumel Premigest. The company has recommended that families in possession of these products should report the item to the store and request a refund.

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The French dairy company has offices and subsidiaries throughout the Middle East, including its main branch in Dubai which covers the GCC and Levant countries. It is unclear if these products are distributed throughout the region. Lactalis had not responded to The National at the time of writing.

The company reiterated its “deep regret to all parents whose children could have become ill as a result of the consumption of certain infant milks from his unit, and his wishes for speedy recovery to young children.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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