Monday, August 30, 2010

Fonterra's New Warehouse

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Click on images to enlarge)

Sales have been good for Fonterra, this year. America is a huge market.

Fonterra has rented a new warehouse, not far from Chicago, Illinois, near Interstates 55 and 80.

The new facility is over a million square feet and the asking price has been $3.50/sq. ft/year. Since the building has been unoccupied for some time, perhaps a lower price was negotiated.

Fonterra could never supply the dairy needs of America. Fonterra can only depress farm milk prices for American dairy farm families.

Furthermore, there is no evidence that American consumers have benefited from "stuff" from Fonterra being dropped in the U.S. cheese vats.

This is not competition. Consumers in New Zealand pay a great deal more for milk in the store.

What is happening is a zero sum game in which there are winners and losers -hardly market economics.

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