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.
Fonterra chairman Peter McBride had told co-op shareholders that the Government proposal creates “an imbalance within the sector”.
McBride sent an email to shareholders after addressing a primary production select committee in Parliament this morning.
He told Fonterra farmers that Fonterra supports the intent of He Waka Eke Noa – a partnership of 13 members of the agriculture industry, including DairyNZ and Beef+Lamb NZ.
“It clearly aligns with our strategy of focusing on sustainable New Zealand milk.
“The Government has adopted some of the principles the HWEN partnership recommended, but its proposal differs on a number of key points.
“The primary sector worked on HWEN as a total package, to achieve equity on emissions reductions and pricing.
“The Government’s changes now create an imbalance within the sector that needs to be addressed during consultation.”
McBride says Fonterra will be seeking changes on these issues and working with DairyNZ to support farmers to engage in the process.
“It’s important that the final package works for the primary sector as a collective, so all voices need to be heard during the consultation process over the next six weeks.
“This is not a simple issue, and we acknowledge the unease it is creating in our rural communities.”
