New Zealand dairy industry 2001: analysis of challenges, opportunities & external factors impacting this industry

The New Zealand Dairy Industry is a resourced based highly fragmented industry with the distinctive competency of low cost production of milk-to-milk product. Fonterra co-operative has been created from a merger of three key players in the industry along with 14000 shareholders farmers, this company processes the primary resource of milk, manufacturing that resource into over 200 products and distributing to 120 countries. This industry is often highly subsidised throughout the world by use of direct government subsidies to that of government protection by high barriers of entry and monopoly rent. This report further explores the dairy industry’s core competency’s, its capabilities, resources, what current challenges are present and what may lye ahead, along with opportunities from an internal and external view.