Fonterra is not a monopoly

The Herald reports:

Fonterra has continued to lose farmers to its competitors, based on latest production data.

The co-operative’s market share last year ran at about 85 per cent, down from 96 per cent at the time of its inception in 2001.

A timely reminder that Fonterra is not a monopoly. If dairy farmers think they will get a better price from another company, they can do so.

Rakaia-based specialist dairy manufacturer Synlait Milk said last month that it had picked up 28 new Canterbury milk suppliers – bringing its total to 201 for 2016/17.

Synlait said increased demand for nutritional products and increased production capacity had created a chance for more Canterbury dairy farmers to sign up.

Open Country Dairy – the country’s second biggest dairy manufacturer – is also understood to have added new suppliers.

“They are picking up as many as they need, based on their capacity and what they want,” Kilsby said.

Good to see the smaller companies growing.