The Government's new school lunch programme unveiled last week will cost $3 a lunch (down from $8) and save $130 million.
The Government had been working with local businesses, including Fonterra, to "transform" the school lunch programme, in a bid to save money.
Associate Education Minister David Seymour says the Government had "embraced commercial expertise, used government buying power, and generated supply chain efficiencies to realise over $130m of annual cost savings".
Fonterra is already partnering with Sanitarium and the Ministry of Social Development means to provide breakfast as part of the KickStart Breakfast. Since 2009, the programme has served more than 70 million breakfasts and run in over 1400 schools nationwide.
