Milk: Pure and Simple - Fonterra

It’s about MORETHAN JUST theprice of milkApart from Fonterra, six majordairy processors in New Zealandbuy milk from their own dairyfarmer suppliers.We are a farmer-owned co-operative.Milk is our lifeblood. We want to ensure ourhardworking farmer owners get a fair pricefor their milk, and that this money flowsthrough the New Zealand economy.Most of our competitors are corporates whojust see milk as an input cost. Many wantto use regulation to drive down paymentsto New Zealand farmers.These corporates have their own milk supplybut also purchase milk from Fonterra underrules established to ensure competition.The price they pay is essentially the sameprice we pay our farmers.These competitors often buy milk tactically.They often seek supplies at the beginningand the end of the season. This keeps theirplants full and reduces supplies to ours,reducing our efficiency.