Supply Chain Resilience Practice : Fonterr Dairy For Life Essay

1489 Words May 17th, 2015 6 Pages
MSCI 371 Major Assignment
Supply Chain Resilience practice in New
Fonterra: Dairy for Life


In this report I will examine the supply chain risks and disruptions, supply chain resilience practices currently in place, as well as discuss the key success factors and potential barriers to a New Zealand company that affect supply chain resilience. The company that I have chosen to examine is Fonterra.
Fonterra is a dairy co-operative based in New Zealand, this means that Fonterra is owned by the farmers that supply the company. Fonterra Co-operative Group Limited was formed in October of 2001 by the merger of the two largest New Zealand dairy co-operatives, New Zealand Dairy Group and Kiwi Co-operative Dairies. Between these two co-operatives they controlled roughly 95 percent of the New Zealand dairy production, this makes Fonterra a virtual monopsony in the New Zealand dairy trade. Fonterra exports around 95 percent of its dairy products to overseas countries making it the largest dairy exporter in the worlds and one of the top five largest dairy companies in the world. Fonterra produces a wide range of retail and wholesale dairy and protein based products. From ice-cream to milk, cheese, whey protein powders, yoghurt, infant milk formula and many more.
Fonterra have extensive supply chains that stretch from the farms of New Zealand right through to the end consumers in 140 countries. The vast majority of Fonterra’s raw materials comes from pastoral based…

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