This episode featured as part of the Agribusiness segment in partnership with BNZ.

Dr Nic Lees, senior lecturer in agribusiness management at Lincoln University, says the DIRA review is examining whether Fonterra still operates in a monopsony and whether farmers have realistic alternatives. He says flat milk production over the past five years means any drop in Fonterra’s supply hits its processing efficiency.

“The act that Fonterra operates on is an anti-competition act,” he says.

He says the requirement for Fonterra to supply competitors covers only about 30 million litres, involving about 15 to 20 farmers.

“It’s actually not a huge volume of milk.”

He says support for new entrants remains important.

“Fonterra is still very dominant.”

This episode featured as part of the Agribusiness segment in partnership with BNZ.

This article is solely for information purposes. It’s not financial or other professional advice. For help, please contact BNZ or your professional adviser. Opinions expressed are those of the speakers and not necessarily of BNZ. No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this podcast. 

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