Dairy giant Fonterra has pitched its chairman into the battle to stop some of its West Coast farmers moving to Westland Milk Products.
Fonterra chairman Henry van der Heyden is visiting the Murchison area, the only part of New Zealand where the two dairy companies' tankers meet.
Although he denied Fonterra was
pushing into Westland's turf, he said it would most likely accept new applicants.
Springs Junction farmers were reported last month to be cashing in their Fonterra shares, buying cheaper ones from Westland and pocketing a windfall.
The Hokitika-based company indicated seven or eight farms between Springs Junction and Murchison had joined it in the last four years, with a further four or five interested in coming on-line this year.
Van der Heyden said the purpose of his visit was to meet Fonterra farmers, hear their views and tell them what the company had achieved.
He refuted claims 10 or 11 farms had left for Westland, "really it's a handful, over the last year or so, one or two".
It came down to payout at the end of the day, he said.
Fonterra expected to pay $4.15/kg of milksolids for the current season, while Westland would be lower at $4.
"I can't see the logic of why farmers would actually consider leaving Fonterra for Westland."
Fonterra had a strategy built around growing milk supply and it was unlikely it would turn a farmer away.
But he said it was "too strong" to say Fonterra was trying to push into Westland territory.
Van der Heyden also stressed the company's performance, noting it wasn't just its payout which was in good shape. Its shares were increasing, which showed the board was adding value to the business.
When asked if Westland farmers had made a mistake in remaining independent, he said it wasn't his place tocomment. "It's a decision they made and I respect that."
Westland chairman Ian Robb said last month farmers cashing up their Fonterra shares could use the money to invest in their farms.
- NZPA
