A number of farmers from Canterbury and Maruia areas have threatened to move their milk supply to Fonterra as the milk price forecast lies between $5.40-$5.80/kg milk solids (27-29c/l), 3c/l below the Fonterra forecast milk price for this season.
Toni Brendish, who gained her experience with several Danone subsidiaries, has been appointed new CEO after the cooperative lost $14.5m (€9.24m) last year. He has promised to return the co-op to profitability by improving efficiencies and increasing sales of infant formula.
New chair Peter Morrison, who has committed to continue to supply milk to the co-op from all his dairy farms, even though he has options to switch some supplies to Fonterra or Synlait, said it would take more than one year to bring the co-op back to a competitive position.
Must accept all applications
Fonterra refused to disclose if it had been approached by dairy farmers wishing to change.
Under dairy industry regulations, Fonterra are required to accept all applications to supply with only two limited exceptions, a minimum volume of 10,000kg milk solids (116,000l) and transport costs not exceeding the most expensive existing farmer.