World's largest dairy exporter, Fonterra Cooperative Group Ltd has assured customers from around the world that the milk from New Zealand and safe for consumption.

The dairy giant had carried out some tests on milk produced in the country and had found traces of dicyandiamide, or DCD in milk powder. Experts say that DCD is toxic to humans if consumed in high volume.

Chief Executive Officer Theo Spierings assured its largest consumer, China that agricultural chemical found in some milk products does not pose any health risk to humans and that the milk products from New Zealand are safe for consumption.

According to Spierings, the authorities in China and Taiwan are conducting tests on milk products from New Zealand after Fonterra said on 24 January, 2013 that it has found traces of DCDin some of the samples. He said that the Auckland, New Zealand-based company has not received any customer complaints and that no products have been returned or blocked.

"We're providing all the information that is needed on a customer level. I would be very surprised if retailers are withdrawing product from the shelf," said Spierings.

Fonterra Cooperative, which is owned by farmers, now accounts for about 40 per cent of the global dairy trade and a fifth of its milk export goes to China.