Primary Sector

Fonterra's restructuring will mean higher consumer prices, harm competition

Jenny Ruth
Tue, 19 Apr 2022

Fonterra's restructuring will mean higher consumer prices, harm competition
Farmers are more interested in the milk price than dividends. (Image: LIC)
Jenny Ruth
Tue, 19 Apr 2022
If the government greenlights Fonterra's restructuring plan, it will push up consumer prices for milk products, harm competition and push the value of Fonterra shares down about another 40%.These are the conclusions of a report by consultancy Castalia for Open Country Dairy on the likely impact of the restructuring.Fonterra has already capped the Fonterra Shareholders' Fund and wants to make it cheaper for farmers to join the co-operative so it can increase market share while milk production is flat or declining.Its market share has fal...

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