Fonterra loses legal action brought by former NZ Dairies milk suppliers over inferior supply contracts

Tue, 01 Dec 2015

By Fiona Rotherham Dec. 1 (BusinessDesk) - Farmers who formerly supplied milk to the failed New Zealand Dairies’ milk processing plant at Studholme have won a High Court case against Fonterra Cooperative Group challenging the legality of new inferior supply contracts they were offered by the dairy giant. The nub of the case was whether Fonterra, which bought the Studholme plant from the receivers in 2012, was lawfully able to offer the former suppliers to the plant so-called “growth contracts” on inferior terms in order to keep its existi...

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