Why Fonterra accepted defeat in the dairy aisle
OPINION: Fonterra's sale of its consumer dairy business to Lactalis is a clear sign of the co-operative’s failure to compete in the branded consumer market.
OCD, majority owned by the Talley family, claims that allowing Fonterra to pay a different farmgate milk price to shareholders, will enable the dairy co-op to: “pay an anti-competitive farmgate milk price in regions with the most competition, while paying lower prices to farmers in less competitive regions”.
The Hound notes that the Talleys and the NZ First party (who have been vocal in their criticism of Fonterra) have had a very close association over the years. Meantime, Parliament’s primary production select committee is scheduled to report back on the DIRA Bill next February. Keep an eye out for that one.
