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Duncan Coull.
Fonterra farmers are worried that suppliers are leaving the co-op.
Shareholders council chairman Duncan Coull told the co-op’s annual meeting that while the ‘retain and grow’ target of 82.2% was reached there continues to be a downward trend in this measure.
“There are a number of factors that go into this, some outside our control,” he told about 150 shareholders in Hawera this month.
“This number will have greater significance as milk growth slows to a more moderate number.
“I can’t stress enough that we all have a part to play at some level to ensure we remain stronger together.”
According to the council’s annual report, Fonterra’s total milk collection in New Zealand for the 2016-17 season reached1.5 billion kgMS, down 3% from the 2015-16 season.
The decrease was mostly due to wet spring conditions though stronger autumn production partially offset this reduction.
Fonterra collected about 82.4% of NZ’s milk production in the 2016-17 season, down from 84.1% in 2015-16.
In the annual report, Coull noted this as an important metric to monitor as part of the reason for the formation of Fonterra was to provide critical mass to compete in the global marketplace.
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