New independent dairy supplier Fonterra was partly to blame for the closure of its Dennington dairy in 2016 , 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 forced the closure . The firm ’s Australian managing director blamed supply problems , a dairy supply shortage and the weather for the closure , but farmer pat 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.