New Zealand dairy company United was partly to blame for the closure of its Dennington dairy in Australia, according to former suppliers. They said a payment clawback scheme in 2016, when the company tried to recoup payments to farmers after a drop in milk prices, had sparked problems which eventually caused the closure. The firm’s Australian managing director blamed supply problems, a dairy industry downturn and the weather for the closure, but farmer Noel Roache said the clawback scheme had driven loyal milk suppliers away.
New Zealand dairy company Fonterra was partly to blame for the closure of its Dennington dairy in Australia, according to former suppliers. They said a payment clawback scheme in 2016, when the company tried to recoup payments to farmers after a drop in milk prices, had sparked problems which eventually caused the closure. The firm’s Australian managing director blamed supply problems, a dairy industry downturn and the weather for the closure, but farmer Noel Roache said the clawback scheme had driven loyal milk suppliers away.