Fonterra poaches Westland farmers

Fonterra’s plans to tap into dissatisfaction over low Westland Milk Products payouts by approaching suppliers to switch loyalties may have hit a hurdle.

Westland is fighting back, posting its most competitive payout forecast for years of $6.75 to $7.20 per kilo of milk solids for the 2018-19 season, to match Fonterra’s $7kg/ms.

Federated Farmers West Coast president Peter Langford said Fonterra was approaching larger Westland suppliers to send their milk over the southern alps. ‘‘They’ve done it before. It’s not the first time.

‘‘None of us are happy that Fonterra are soliciting supply from the West Coast, but what can we do about it.’’

West Coast farmers closest to state highway routes to Fonterra’s Darfield plant in central Canterbury were being targeted. They included suppliers from Inchbonnie and Rotomanu in the south. Dairy farmers at the top end of the Grey Valley and Reefton were also being approached for supply via the Lewis Pass.

Westland was making an effort to lift its payout to more competitive levels, said Langford, a Karamea dairy farmer and Westland Milk shareholder. ‘‘We don’t want any suppliers leaving, as it will reduce milk volumes and sales potential.’’

Suppliers at Karamea and south of Hokitika were too geographically Farmers are frustrated at poor mobile phone coverage ‘‘blackspots’’ and slow and dated internet, says Federated Farmers.

A Federated Farmers’ survey on the quality of telecommunications connectivity in the provinces drew a fast reaction, with close to 500 responses within 24 hours of its launch.

‘‘It’s hardly surprising because we know from member feedback that broadband and mobile blackspots cause considerable frustration,’’ said Federated Farmers’ vice-president Andrew Hoggard.

‘‘Technology is a huge and increasing facet of modern farming. If the apps and programmes on farmers’ digital devices drop out or run at crawl-speeds, they simply can’t run their businesses efficiently.’’

Farmers are big users of digital technology, but are finding themselves restricted by unsatisfactory coverage. The survey was about gaining an up-to-date understanding of coverage and connectivity standards in rural areas around the nation.

‘‘The intention is to run this survey every year,’’ Hoggard said. ‘‘We will be able to map survey responses year-on-year, meaning we can show over time where the situation is improving or where it is getting worse.’’

For anyone who doubted farmers were big users of digital technology, 96 per cent of respondents had mobile phones.