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NZ coop says costs must fall in Australian dairy industry
20 May 2005
New Zealand dairy cooperative Fonterra said it may now seek to buy the NSW group Dairy Farmers. Fonterra tried but failed to buy National Foods. Dairy Farmers is being restructured and culling its workforce by 20 per cent ahead of a possible stock exchange listing within the next two years. Fonterra said it expected more rationalisation in the Australian dairy sector in the next 12 months. Dairy Farmers has announced it will close milk factories at Bomaderry in NSW and Mount Gambier in South Australia to redirect milk to more efficient sites, and will close a milk intake facility at Deniliquin in NSW. Fonterra said there was still unused capacity in the Australian dairy industry and more costs needed to be taken out of the processing chain.
Financial Review, 20/05/05
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