4 Oct 2023

The battle for milk supply in Waikato

From Nine To Noon, 9:32 am on 4 October 2023
A dairy herd wearing electronic collars, which guide the cows around the farm, lines up for milking

A dairy herd wearing electronic collars, which guide the cows around the farm, lines up for milking Photo: RNZ/Sally Round

Competition for milk supply in Waikato is intensifying as a new international player sets up shop.

Singapore-based Olam Food Ingredients - known as OFI - has been door-knocking at dairy farms surrounding its new Tokoroa dairy processing facility.

The multi-national agricultural organisation sources and supplies food products from around 50 countries, including cocoa, coffee, dairy, nuts, and spices.

It's prompted some long-established Fonterra farmers to erect billboards, declaring themselves a "proud Fonterra farmer". One of the signs is right across the road from the new plant, which will open later this year.

Fonterra says the idea for the signs came about from group discussions with farmers and anyone who wants to erect a sign will get support to do so.

Federated Farmers Waikato dairy spokesperson Matthew Zonderop, and senior agricultural economist at Westpac Nathan Penny speak to Kathryn Ryan.