Battle for milk
OPINION: Fonterra may be on the verge of selling its consumer business in New Zealand, but the co-operative is not keen on giving any ground to its competitors in the country.
A fencing products promotion last month by Fonterra and its subsidiary RD1 Ltd has been dubbed a great success.
RD1 managing director Jason Minkhorst says about 2500 suppliers bought in.
“We we sold over 100,000 posts,” he told Rural News. “More was spent during the one week of the promotion than we could expect in store sales in a month; suppliers really responded to the offer.
“We’ve also got a clearer idea about regional product variations and will incorporate this knowledge into our national fencing campaigns.”
Fonterra in June 2012 launched a waterway management scheme requiring that farmers, under their supply contracts, by December 1, 2013 exclude stock from waterways by permanent fencing or planting.
Fonterra’s director global sustainability, Bruce Donnison, says the promotion is one way of helping farmers to achieve this.
“Protecting New Zealand’s waterways is important to everyone in our cooperative and we need to work together to make a difference.
“We know our farmers are working hard to make changes on-farm, but we also know there are big costs involved. We want to do what we can to get behind our farmers and support the work being done.”
The promotion included 50% off the price of fencing supplies, zero interest for three months on all fencing products, and free wire with all purchases over $1000. Barbecues were held at RD1 stores around the country during the promotion.
Minkhorst says farmers enjoyed getting off-farm and catching up with neighbours, and supplier feedback suggested that having Fonterra field representatives and RD1 staff together at one time was helpful, especially for farmers yet to finish their exclusion fencing.
“They now have a clear understanding of what they need product wise and the best approach for their particular property.”
