Fonterra is considering closing its factory at Kaikoura, which would mean the loss of 22 full-time staff.
Fonterra Photo: RNZ / Andrew McRae
It has met with staff over the proposed closure of the specialty cheese plant.
Fonterra's New Zealand manufacturing director Mark Leslie said a decision was expected in mid-March.
Moving production to other sites would bring significant cost savings for the business and its 10,500 farmer shareholders, he said.
Stress levels are high in the dairy industry and the dairy downturn is likely to get worse before it improves, says an Auckland lawyer with many dairy farmer clients.
Dairy prices have fallen for the fourth consecutive time this year, although not by as much this time.
Fonterra is starting a shake-up of its board, but one critic says he is not impressed the directors themselves will carry out the review.
Dairy giant Fonterra has received a low rating for animal welfare standards and reporting in an international study.
The cut in Fonterra's forecast payout is likely to push more people out of the dairy industry, Federated Farmers says. Video
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