Tuesday, 27 April 2021 16:00

Fonterra's dilemma

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: The Chinese owners of Australia’s biggest and oldest dairy farming business are facing scrutiny from authorities and all eyes are on Fonterra.

Milk from the Van Dairy Group, which owns 23 farms in Tasmania is picked up by Fonterra.

Now media reports suggest the company could sell 10 farms as it struggles to clean up its act.

The Australian Environmental Protection Agency has launched an investigation into alleged animal abuse and overstocking of cattle, which it is alleged is causing effluent systems to fail and damaging nearby waterways.

A series of confidential documents, photographs and accounts from employees and locals appeared to show the conditions deteriorated after the 2016 takeover by China’s Moon Lake.

The big question is, given the highly competitive raw milk market in Australia, will Fonterra feel pressure to stop collecting milk from the farm until the farm owners tidy up their act?

More like this

Fonterra's Whareroa Wins Directors Award

Fonterra's Whareroa site took home the prestigious Directors Award at the co-op's 'Oscars of Manufacturing', while Clandeboye led the way with multiple wins at this year's Best Site Cup.

Dairy Holdings CEO Colin Glass Retires After 25 Years of Growth

After 25 years it is the right time to step away, says Colin Glass, the retiring chief executive of New Zealand's largest private corporate dairying company, Dairy Holdings.

Fonterra Expands China Foodservice Business with New Anchor Essence Cream

Fonterra is strengthening its foodservice presence in China with the launch of a new cream for professional bakeries at Bakery China 2026 in Shanghai.

Smith V Fonterra

OPINION: To a chorus of crying greenies, and not a minute too soon, the Government has moved to put the courts back in their place through proposed amendments to the Climate Change Response Act 2002, intending to limit climate litigation claims such as Smith v Fonterra, in the interests of providing greater certainty for vital industry.

Fonterra Opens 2026/27 Milk Price Forecast At $9.75kgMS

For the third season in a row, Fonterra farmers are in for a farmgate milk price near $10/kgMS.

Featured

Indian PM Set To Make A Fleeting Visit

With the New Zealand/India Free Trade Agreement (FTA) dominating political debate here, India Prime Minister Narendra Modi will be visiting New Zealand next week.

Southland Farmers Named 2026 Sustainable Farming Ambassadors

Michelle and Tony Roberts didn't inherit the farming business they have today. They’ve built it from the ground up.

How Pungent Pukeko Turned a Passion Project into an Award-Winning Gin Brand

“We’re not normal.” That’s how Jack Walters, executive director of Pungent Pukeko, describes his gin brand, which has just won gold at the World Gin Awards.

Dr Tim Harwood Honoured with 2026 New Zealand Food Safety Award

Dr Tim Harwood, a seafood food safety research leader, has been awarded the 2026 Significant Contribution Award at the New Zealand Institute of Food Science and Technology (NZIFST) Food Industry Awards.

Waikato Waters Begins Operations Across Waikato Region

Today marks the first day of operations for Waikato Waters, a new council-controlled organisation established by six district councils to deliver water and wastewater services for their communities.

MPI Opens $3m Greenhouse Gas Research Funding Round

The Ministry for Primary Industries (MPI) has announced has opened applications for the 2026/27 funding round of the Greenhouse Gas Inventory Research (GHGIR) fund.