Established with the vision of being "New Zealand's Nokia", Fonterra is now making headlines for all the wrong reasons. In the wake of the failures of farmer-owned dairy cooperatives Westland Milk Products and Australia's Murray Goulburn, can Fonterra survive? More importantly, should we care, asks economist Peter Fraser

Fonterra's creation is part of Kiwi folklore: it started with the dream of a unified dairy industry with the size and scale to "take on the world and win".

These hopes were seemingly dashed when the reality of a "mega merger" was stoutly rejected by the Commerce Commission.

Undeterred, industry leaders persisted

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The strategic review

How did Fonterra get itself into such a mess?

Solutions