‘Predator’ Fonterra in gun

“Predatory buying” allegations against dairy giant Fonterra have been lodged with the Commerce Commission.

Waikato-based Open Country Cheese and the South Island company Dairy Trust, fledgling independents, told The Dominion Post their complaints alleged Fonterra was using its near-monopoly position to frustrate their efforts to get milk from farmers.

The complaints centred on Fonterra paying more for milk in areas where it had competition.

A commission spokeswoman said inquiries were being made on whether an investigation was warranted. The inquiries involved allegations of “predatory buying” by Fonterra, otherwise called “tactical pricing”, she said.

Fonterra general manager of milk supply growth Mark Leslie said the practice was only used to keep existing suppliers in the face of competition. It was “openly” discussed with the commission.

“We would not put this offering to market unless we were confident of its robustness in the face of challenge,” he said.

Open Country Cheese founder and former National government minister Wyatt Creech said Fonterra had played hard-ball for years.

Read more

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s