Fonterra is being accused by a boutique dairy company of trying to stifle smaller producers, but the dairy giant says it is playing fairly.
Lewis Road Creamery claims its products could be pushed off the shelves by Fonterra's dominance. Photo: Facebook / Lewis Road
Lewis Road Creamery founder Peter Cullinane said Fonterra was looking to do a deal with supermarkets in the North Island that would give its milk brands 97 percent of the chiller space.
Mr Cullinane said that would leave everyone else jostling over the remaining 3 percent, and it would make his company's position untenable.
"The potential gain for them in controlling the chillers to that degree is vastly offset by the damage it does to their reputation as good and fair corporate citizens."
Mr Cullinane said Fonterra already had about 80 percent of the market.
In a statement, Fonterra said it was playing fairly and it negotiated with supermarkets in New Zealand on a regular basis, like all of its competitors.