Organisations representing rural America are urging the US government not to give Fonterra more access to their domestic dairy market - saying its unfair market power has the potential to seriously damage American livelihoods.
Eleven groups representing US dairy farmers and rural communities have written to the Senate finance committee arguing that the Trans-Pacifc Partnership (TPP) free-trade agreement currently being negotiated threatens their dairy sector.
They say they're concerned about Fonterra getting greater access to their domestic market through the TPP and that US dairy farmers cannot afford to compete with imports from New Zealand's monopolistic dairy sector.
They say an increased New Zealand dairy presence would be especially damaging for American farmers who produce nonfat dry milk, butterfat or cheese.
New Zealand agricultural trade envoy Alistair Polson says claims that Fonterra is a statemonopoly are ridiculous.
