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Dairy Payout Is Wake-Up For Farmers

Dairy Payout Is Wake-Up For Farmers

Wednesday 24 Jul 2002

The Tatua Dairy Company's massive payout of $6.77 should be a wake-up call for farmers across the country, ACT Rural Affairs Spokesman Owen Jennings MP said today.

"This brilliant performance is a result of investing in R&D and consumer driven products. Unless dairy farmers supplying other companies are prepared to make the same sacrifices and have the same focus on end consumers, the gap between Tatua and the rest of the industry will continue to grow.

"There will be, predictably a response from Fontera suggesting that only small companies can achieve such spectacular results. The truth is the Tatua Directors and management invested in their own future 20 years ago when they had ten-times the investment in science, food technology, research and end consumer products understanding and commitment than their big rival, the NZ Dairy Group.

"There is plenty of room for more Tatua's in the world market-place and it is not too late for the rest of the industry to catch up. However, a preoccupation with being the biggest and the lowest costs commodities supplier won't ever see others reaching the heights that Tatua has gained.

"The ACT party commends the Tatua company for their foresight and performance. ACT NZ strongly supports such innovation and development in New Zealand," Mr Jennings said.


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