Wednesday, 24 July 2019 11:29

Factory closures?

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OPINION: Australia hasn't been a happy hunting ground for Fonterra in recent years thanks to increasing competition among processors and supermarkets pushing their weight around.

Add that to a drop in milk production due to extreme weather this year and the co-op is facing a dilemma of overcapacity. Processing 20% of Australia’s total milk, the co-op suddenly finds itself with more stainless steel than it needs.

Rumours are rife that Fonterra will close one or more of its processing plants there.

Fonterra will announce its annual result on September 12. Watch this space.

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