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

Disclaimer: Fraser is providing economic advice to an independent processor associated with the current Government review of DIRA, the legislation governing the dairy industry.

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


The strategic review

How did Fonterra get itself into such a mess?