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Dairy following failed example of meat industry

14/03/2018

Key question is the nature of the capacity. Can the industry transition to high value products? Or is it locked into commodities, eg powder? These questions need to be addressed, else dairy will decline

Homepaddock

Have we reached peak dairy factory?

The number of dairy factories sprouting in Waikato has got to the stage that farmers are concerned the industry has reached a tipping point.

They fear further growth could lead to overcapacity – too many milk processing sites – and dairying will follow the path of the meat industry, which over the past decade has been plagued by plant closures and job losses. . .

Fonterra Shareholder’s Council chairman and Waikato farmer Duncan Coull​ says it is becoming a national issue for the industry. It is bigger than Fonterra and an industry-wide discussion is needed to find a way to save it from itself.

“Do farmers really want to reach that tipping point because once that tipping point is reached, there is no turning back. We need to start asking ourselves the question as farmers what we want the industry to look like…

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