15 Jul 2013

Dairy industry competition set to increase - Fed Farmers

8:27 am on 15 July 2013

Federated Farmers predicts competition in New Zealand's dairy industry is about to heat up following the announcement that FrieslandCampina has bought a 7% stake in Canterbury-based milk processor Synlait.

The head of the federation's dairy wing, Willy Leferink, says the arrival of the Dutch co-operative in New Zealand signals the arrival of serious competition to Fonterra.

Mr Leferink says FrieslandCampina had been looking to invest in New Zealand for some time but struggled because of Fonterra's market-dominance.

FrieslandCampina, one of the world's biggest dairy co-operatives, is owned by 19,500 dairy farmers who supply it in the Netherlands, Belgium and Germany.