Westland Milk Products chief executive Rod Quin says Fonterra's contact with West Coast dairy farmers about the possibility of them supplying milk to the dairy giant is an "unwelcome approach".
The Greymouth Star reported yesterday that Fonterra had contacted farmers to gauge their attitude to supplying milk, in reaction to Westland Milk's previously announced plans to establish a foothold in Canterbury.
"Fonterra is making an attempt to secure milk supply on the West Coast, which Westland understands is to further their plans to expand their commodity factory at Darfield," Mr Quin said in a statement yesterday.
"Westland is aware of the direct mail approach to our shareholders and will defend this unwelcome approach and stand up for the ongoing success of the smaller independent dairy processors, the employees and residents of the Coast.
"Westland generates over $500 million and ploughs the returns back into the Coast economy."
Mr Quin said the potential loss of dairy processing on the West Coast, through Fonterra possibly taking suppliers from Westland Milk, would be a "tragedy" for the industry."
Strategically, New Zealand needs Westland to continue to be successful and our shareholders will discuss this and many topics at district meetings next week," he said.
- Matt Kerstens