Fonterra to pay higher rates for milk in some areas

NEW ZEALAND - Fonterra will start paying higher rates for contract milk in some areas next season in an attempt to stop suppliers from jumping the fence and joining its competitors.
calendar icon 26 January 2007
clock icon 1 minute read
Fonterra has been losing suppliers to others such as Open Country Cheese in Waikato, which does not require farmers to buy shares to sell their milk to it. Two independent dairy companies in Canterbury also plan to start their own processing.

Fonterra's chairman, Henry van der Heyden, says Fonterra will trial tactical milk pricing over the next year in Waikato and Canterbury and other areas where there are active competitors.

The dairy cooperative will offer spot prices to farmers thinking of cashing in their Fonterra shares and changing companies, to continue supplying it under contract.

Source: Radio New Zealand
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