Fonterra

Background

The first dairy co-operative in New Zealand was established in Otago in 1871. By 1920, there were 600 dairy processing factories of which about 85% were owned by co-operatives.[13] In the 1930s there were around 500 co-operatives[14] but after World War II, improved transportation, processing technologies and energy systems led to a trend of consolidation, where the co-operatives merged and became larger and fewer in number.[15] By the end of the 1990s, there were only four co-operatives nationwide: the Waikato-based New Zealand Dairy Group, the Taranaki-based Kiwi Co-operative Dairies, Westland Milk Products, and Tatua Co-operative Dairy Company.[13]

Governance

John Roadley was the inaugural chairman of Fonterra's board. He foreshadowed his resignation in August 2002 and was succeeded, after the next annual general meeting, by Henry van der Heyden.[48] Van der Heyden held the chairmanship until December 2012.[49] John Wilson succeeded van der Heyden and announced his resignation in July 2018 due to illness (he died in January 2019 aged 54).[50] John Monaghan succeeded Wilson.[51] In March 2020, he foreshadowed that he would step down in November 2020.[52] In June 2020, Peter McBride was announced as Monaghan's successor.[53]

International

• Anchor (milk)
• Anlene
• Anmum
• Mainland (cheese, butter)
• NZMP (ingredients)
• Anchor Food Professionals (foodservice supplies)
• Nutiani

New Zealand

• Anchor (milk, cream, butter, yoghurt)
• Anchor CalciYum (flavoured milk, custard yoghurt, ice cream)
• Anchor Uno (Children's yoghurt)

Initiatives

Dairying stock entering waterways due to lack of fencing and poor use of fertilisers are major contributors to water pollution in New Zealand.[74] Fonterra's environmental policy states that "Fonterra shall demonstrate a global commitment to protecting the environment. Sustainability, good environmental practice and environmental improvement are cornerstones of Fonterra's environmental commitment."[75] Fonterra claims to have a number of initiatives such as the Dairying and Clean Streams Accord, relating to environmental protection to achieve this policy. In December 2011, the Green Party questioned Fonterra's credibility and the effectiveness of the self-auditing approach given the wide discrepancy between Fonterra's claims and an independent audit of Dairying and Clean Streams Accord.[76]

In 2003, Fonterra became a signatory to the Dairying and Clean Streams Accord, which sets a timeframe for the improvement of water quality on farms. Progress on the Accord goals is reported by the signatories in March of each year on the basis of data collected by Fonterra.

Sanlu milk scandal

In September 2008, one of the biggest dairy companies in China, the Shijiazhuang Sanlu Group, 43% owned by Fonterra,[119] recalled more than 10,000 tonnes of infant formula after a food safety scandal involving the criminal contamination of its raw milk supply with melamine. Court papers showed the company first began receiving complaints of children becoming sick after drinking its milk in December 2007, but only stopped production when Fonterra blew the whistle in September 2008.[120] After the initial focus on Sanlu, China's quality watchdog said that inspectors had also found the chemical melamine in baby formula produced by 22 companies nationwide.[121] An estimated 300,000 Chinese babies were affected, and six died after developing kidney problems as a result of drinking formula containing melamine.[122]

Court case of Fonterra vs Bega Cheese

Fonterra marketed and distributed the Bega Cheese brand, under an agreement established between the two companies in 1999. Fonterra later raised the issue of Bega otherwise using the Bega brand to market peanut butter. Bega themselves have since challenged this, accusing Fonterra of not living up to the agreement by not promoting the brand and therefore devaluing it.[147] This case ended on 25 February 2021, when the Victoria Supreme Court dismissed all claims. Bega is allowed to continue to sell market peanut butter, but the court found Fonterra had no obligation to promote the brand as Bega claimed.[148]

Greenpeace

In September 2024, Greenpeace announced they were suing Fonterra for breaching the Fair Trading Act. Greenpeace claimed that the Fonterra marketing of milk from "100% New Zealand grass-fed" cows was misleading when up to a fifth of an animal's diet might be imported palm kernel. Palm kernel is considered to be linked to deforestation, and New Zealand imports two million tonnes of it annually.