Fonterra chairman John Monaghan says the "sad demise" of Westland Milk as a cooperative and efforts by non-cooperatives to cut the milk price paid to farmers make it a critical time to consider the future of the dairy industry.
As the countdown begins to a Cabinet verdict after a wide-ranging government review of the fitness of the legislation (DIRA) governing the $17 billion dairy industry, Monaghan said Fonterra wants the outcome to be an industry which promotes investment in regional New Zealand and keeps the profits at home.
"While I can't speak for the Government or make assumptions, I can say the co-op and many of our farmers have constructively participated in the Government's review. When you look at the sad demise of Westland as a cooperative and recent lobbying by other processors to reduce the milk price paid to farmers, it's a pivotal time to be considering the future of dairy in New Zealand," Monaghan said.
"We'd like to see a dairy industry that promotes investment in regional New Zealand, where profits are kept at home for the benefit of all New Zealanders, where farmers are paid good money for their milk, and the unique attributes of New Zealand's environment are protected.
"DIRA has a critical role in supporting this vision and we await the Government's announcement."