Fonterra has offered it Farmers in the Canterbury, Otago and Southland regions of South Island a winter milk premium of NZ $1.40/kg milk solids (€0.94), less transport costs to their Clandeboye Plant, where the milk will go for the manufacture of cheese for the Asian market. Transport for the 500km journey will probably cost farmers half of this premium.

Farmers in these areas say that while this is good news, it is far short of the NZ $3.80/kg (€2.56) they were getting under their original milk contract, which no longer exists.

Dairy farmers will continue to push Fonterra for a plant in their area that can add value to the winter milk supply rather than spending their share investment in other parts of the world.

At the latest meeting in Southland, Theo Spierings told shareholders that as customers were asking for a flatter curve, the co-op would need more winter milk. He was told in no uncertain terms that if Fonterra failed to pay a winter milk premium, farmers would have to find a processor who would.