Kiwi Co-op Dairies is surging ahead of its giant rival New Zealand Dairy Group in popularity with potential farmer-suppliers in Southland and Otago, land agents say.
"There is a huge preference here for Kiwi, instead of the New Zealand Dairy Group," Southland Real Estate Institute rural spokesman David Briggs said.
NZDG
had a moratorium on taking on new suppliers and was looking at extending it to December 24, but Kiwi had said it would consider new suppliers at September 30.
"Kiwi could expand very rapidly, and NZDG is very worried about them," Mr Briggs said.
"Kiwi seem a more progressive company, and their last payout was higher.
"In the Clydevale-Clinton area of South Otago, most of the dairy farmers have had a choice of two factories over the last five years, and 95 per cent have chosen to go to Kiwi," he said.
"The main thing they like about Kiwi is the openness of the company, of the directors."
"It's not hard to find out what is happening within the set-up ... whereas NZDG appears to be very much a closed shop," Mr Briggs said.
NZDG had made several bad blunders, such as its proposed shareholders' council, to act as a buffer between farmers and their directors.
"That went down like a lead balloon in Otago-Southland, because if you're a farmer you might have a million or several million invested in your farm and your access would be blocked to the people involved in the industry."
- NZPA
