Paying the Price for “Johnny-Come-Lately” Attitude
2 MAY 2016
Paying the Price for Fonterra’s “Johnny-Come-Lately” Attitude
Provincial New Zealanders are paying the price for Fonterra’s “Johnny-come-lately” attitude to value-added products, says New Zealand First.
“The co-operative’s move to dump around 1800 businesses supplying goods and services is tragic for families and towns around the country,” says New Zealand First Leader and Northland MP Rt Hon Winston Peters.
“While rural towns are reeling from the shock of decreased spending by dairy farms, as the milk payout remains low and farms being sold up by banks, Fonterra has a responsibility as a corporate citizen to lead the way.
“It has scored a first half-year net profit of $409 million, up 123 per cent, with much of it (108 per cent) from its valued-added brands.
“Instead of axing suppliers it should be speeding up the move to value-add and ensuring there is a demand for goods and services. If these small businesses close, Fonterra will be claiming further down the track that it can’t procure services locally.
“If it wants to make savings in the short term Fonterra should reduce the astronomically high wages of its top level staff and fully commit to value-added products. Only this sort of production will turnaround provincial New Zealand’s economy.”
ENDS