Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ Dairy Foods Signs Contracts with Fonterra

16 October 2001

New Zealand Dairy Foods Finally On An Even Playing Field With Fonterra
New Zealand Dairy Foods Signs Contracts with Fonterra

New Zealand Dairy Foods and Fonterra, today signed key supply and brand licensing contracts ensuring New Zealand Dairy Foods can now operate on an even playing field in the New Zealand market. A key outcome is that Fonterra must charge New Zealand Dairy Foods the same transfer price for raw milk and other ingredients as it does its own subsidiary, Mainland. The ten-year contracts cover costs for supply of raw milk, cream, butter and cheese, as well as licensing the Chesdale brand. Licensing agreements for the Anchor, and Fernleaf brands were signed some months ago.

Peter McClure, CEO, New Zealand Dairy Foods, says, “These contracts have a huge impact on how we operate and to finally have them in place brings far greater certainty to our whole business. With the new legislation through and the regulations in place, we can get on doing what we do best – producing and marketing great dairy products. Internationally Fonterra might be larger than New Zealand Dairy Foods but in New Zealand we are competing on a level playing field and we intend to be the biggest player in this market.”

Another important feature of the new agreements is that New Zealand Dairy Foods will now have better forward visibility on the cost of raw milk.

Mr. McClure says, “The previous situation of retrospective pricing for raw materials was hopeless and cost us dearly. We were in the unacceptable position of not knowing the true costs for raw materials. We therefore worked hard to reach agreements that would remove these uncertainties so we can now manage our business in a way most other industries take for granted.”

The signing of the contracts marks the end of months of painstaking negotiations, during a time when many other events were also taking place. It is also the first major test of how New Zealand Dairy Foods and Fonterra will compete in the new environment.

Mr. McClure says, “To Fonterra’s credit they have been extremely professional throughout the negotiations. The outcome is fair to both parties and I believe we have reached a sensible and successful conclusion.”


For more information contact Peter McClure, Chief Executive Officer,
New Zealand Dairy Foods. 09 295 2786.

Issued by Network Communications, Jane Dodd, 09 306 5804 or 027 4470 446.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news