Since its inception in 2001, Fonterra has lost 11 percent of market share to its rivals, and is currently standing at 85 percent. The dairy co-op expects its production to drop by 4 percent this season, ending on May 31, whereas New Zealand’s overall dairy production is set to decrease by 2.5 percent.
Milk suppliers are apparently heading elsewhere, looking to other milk manufacturers that do not require to own shares whilst offering similar prices; 28 Canterbury suppliers left Fonterra for Synlait Milk last month and others are said to have joined Open Country Dairy.
DAIRY CO-OP EXPERIENCING MARKET SHARE LOSS
