The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / The Country

Milk shakeup push coming from Fonterra

Fran O'Sullivan
By Fran O'Sullivan
Head of Business·NZ Herald·
2 Jul, 2013 05:30 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save
    Share this article
Fonterra's CEO Theo Spierings says the multi-council approach is a killer. Photo / Chris Gorman

Fonterra's CEO Theo Spierings says the multi-council approach is a killer. Photo / Chris Gorman

Fonterra chief Theo Spierings wants Government buy-in on a national strategy, reports Fran O'Sullivan

Fonterra chief executive Theo Spierings wants the Government to buy into a national plan the dairy giant is developing to grow the New Zealand milk pool.

A formal approach to Government will not be made until August. But Spierings has already briefed Prime Minister John Key on the dairy giant's developing strategy.

The Fonterra plan has to balance two objectives: How to add more value to the NZ milk pool - which is expected to grow by a further 2.5 billion litres by 2020 - and make good on a commitment to sustainable dairying.

"We're going to give the plan to the Government in August, "says Spierings.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"We will go in on an area-by-area approach over the country. But it's a national plan and what we really ask Government is that, if we land this plan, we go hand-and-hand with Government on a national approach rather than a multi-council approach.

"Because the multi-council approach is going to kill us and it's going to kill growth because you have different debates all over the country and you need national ownership here."

Fonterra projections based on the 3 per cent compound average growth rate of the NZ milk pool over the past decade - and a projection of 2 per cent annual growth for the next seven years - suggest an extra 2.5 billion litres will be produced annually by 2020.

Spierings is upfront about some big and potentially controversial questions which need to be decided:

Advertisement
Advertise with NZME.

How much of the additional milk will come from greater productivity? Where will more land conversions take place? Where there should be higher stocking rates and whether higher stocking should be discouraged in some areas because the environment cannot take it.

He notes the environmental challenge is real, but maintains there is a "big risk" of sub-optimal outcomes from non-strategic local and regional interventions.

The Fonterra plan will spell out that dairy farmers supplying the co-operative have to be on top of effluent management to eliminate discharges to fresh water, ensure 100 per cent stock exclusion from waterways, reduce the nutrient leaching risk and use water more efficiently.

Every farm supplying Fonterra will be assessed every year and environment improvement plans will be agreed where needed. The final sanction is non-collection of the milk.

Discover more

Shares

Chinese dairy float for NZX

24 Jun 05:30 PM
Opinion

Fran O'Sullivan: Synlait calls and investors jump

25 Jun 05:30 PM
Opinion

Willy Leferink: NZ must fight for its dairy reputation

25 Jun 08:32 AM
Shares

Synlait targets infant formula market

28 Jun 05:30 PM

"We are very open but in order to supply Fonterra you need to step up. The farmers know it is coming," says Spierings.

"We are looking at each and every farm on effluent management. That is happening and at the end of the year we should be over 95 per cent stock exclusions."

Save
    Share this article

Latest from The Country

OpinionGlenn Dwight

Meryl Sheep and Judy Drench: Does A Dog's Show need a movie?

The Country

Vege tips: Yacon adds a juicy twist to your garden and plate

The Country

Free DDT offered in the war against wasps in 1949


Sponsored

Revealed: The night driving ‘red flag’

Advertisement
Advertise with NZME.

Latest from The Country

Meryl Sheep and Judy Drench: Does A Dog's Show need a movie?
Glenn Dwight
OpinionGlenn Dwight

Meryl Sheep and Judy Drench: Does A Dog's Show need a movie?

OPINION: A Dog's Show was essential childhood viewing - second only to the Goodnight Kiwi.

09 Aug 05:01 PM
Vege tips: Yacon adds a juicy twist to your garden and plate
The Country

Vege tips: Yacon adds a juicy twist to your garden and plate

09 Aug 05:00 PM
Free DDT offered in the war against wasps in 1949
The Country

Free DDT offered in the war against wasps in 1949

09 Aug 05:00 PM


Revealed: The night driving ‘red flag’
Sponsored

Revealed: The night driving ‘red flag’

04 Aug 11:37 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP