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Case Study : Co Operative Group

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Glen Oliver Fonterra Essay Year 10 Business Studies Mr Hijazeen Fonterra Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by around 10,600 New Zealand farmers. The company is responsible for approximately 30 percent of the world’s dairy exports and with a revenue of over 19.86 billion New Zealand dollars is New Zealand’s largest company. This report will include the Fonterra’s; history, general information, financial information, dairy exports and its contribution to New Zealand’s economy. History In New Zealand and in most Western countries dairy Co-operatives have long been the main organisational structure in the industry. The first dairy co-operative was established in 1871, in Otago. By 1920 there were around 600 dairy processing factories of which about 85% were owned by co-operatives. In the 1930s there were about 500 co-operatives but after World War II, processing technologies, improved transportation and energy systems led to a trend of consolidation where the co-operatives merged and became larger and fewer in number. By the late 1990s there were four co-operatives: the Waikato based New Zealand Dairy Group, the Taranaki based Kiwi Co-operative Dairies, Tatua Co-operative Dairy Company and Westland Milk Products. Fonterra was formed in 2001 from the merger of the two largest co-operatives, the New Zealand Dairy Group and Kiwi Co-operative Dairies

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