Fonterra's 'Velocity' programme doesn't appear to have delivered - ComCom

Thu, 12 Sep 2019

By Paul McBeth Sept. 12 (BusinessDesk) - Fonterra Cooperative Group's 2015 'Velocity' restructuring doesn't appear to have achieved the savings expected and pushed up the dominant dairy exporter's costs used in setting the regulated milk price. The dairy exporter bumped up its administration and overhead costs for the 2019 and 2020 seasons by $20 million in each year in calculating the milk price, according to the Commerce Commission's final report on the 2019 milk price. The regulator said the extra costs relate "either to the failur...

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