Fonterra has cancelled its supply contract with a Tasmanian dairy farmer who faces animal cruelty allegations.
Roderic Mitchell was already facing a raft of animal cruelty charges before police and animal welfare officers last week raided his Redpa dairy, in the state's northwest, The Australian newspaper reported.
They removed 27dead and injured cows in the second raid on the property in less than a week.
Though criminal charges will depend on autopsy results, Fonterra has refused supply from Mitchell after taking his herd's milk for several years.
"Fonterra takes issues of animal welfare very seriously," said a Fonterra spokesman in Australia, James Molan.
"We require our suppliers to take reasonable steps to meet Australian dairy industry standards for animal welfare.
"Due to concerns around animal management practices at Mr Mitchell's farm we have ended our supply relationship with him."
Mitchell has put his 220ha farm up for sale for A$2.7 million ($3.4 million)
