Infant formula containing the tainted ingredient has been taken off shelves in New Zealand
Fonterra has said the head of its New Zealand milk products, Gary Romano, has resigned with immediate effect.
Fonterra did not give any reasons, but it comes just days after a safety scare over some products triggered a recall and import bans from some countries.
Earlier this month, it said batches of products, including infant formula, contained a raw ingredient tainted with bacteria that can cause botulism.
The New Zealand government has launched an investigation into the scare.
Fonterra, the world's biggest dairy exporter, has also launched an internal investigation into the matter.
Fonterra's chief executive, Theo Spierings, said he had accepted the resignation and would take charge of the division.
"Gary has made a significant contribution during his time at Fonterra and we respect his decision," Mr Spierings said in a statement.

Source: BBC News - Business http://www.bbc.co.uk/news/business-23691943#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa