Fonterra says the prosecution of one of its biggest suppliers for illegally discharging effluent does not help the industry's reputation.
The co-operative is considering what action to take against the Reporoa-based Hillside Farms, which has been convicted on 34 charges of breaching effluent discharge conditions.
It's the latest in a series of convictions for Allan and Frank Crafar, who also own a number of other dairy farms across the central North island.
Fonterra's general manager of sustainable production John Hutchings, says he doubts there will be much sympathy for the pair among other dairy farmers, who are doing a good job.
But the Fish & Game Council is critical of what it calls Fonterra's lack of leadership following the case.
It wants the Dairy Companies Association to "take the lead" by providing a set of environmental best practise requirements for inclusion in supplier contracts.