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Fonterra is circling disgruntled Australian farmers in the heart of the country’s largest farming collectives.
Fonterra has met with 20 dairy farmers at Kergunyah, northeast Victoria, because it anticipates needing more milk for its factory at Stanhope, west of Shepparton.
Fonterra has virtually no presence in the Murray-Goulburn heartland; the Aussie collective MG holds 90% of dairy farm contracts in northeast Victoria and Parmalat takes the remaining 10%.
The co-op is in the middle of a multi-million upgrade of the cheese plant at Stanhope and could do with more suppliers.
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