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Thursday 21 September 2006

Milking export markets threatens dairy giant

ANNZ Dairies plan to set up a South Canterbury-based cheese and milk powder factory may strip export business from dairy giant Fonterra.

NZ Dairies will be the third new dairy company to announce plans to start a business since the market was opened with the introduction of the Dairy Industry Restructuring Act in 2001.

The new plant will process up to 1.6 million litres of milk per day sourced from dairy farmers between Oamaru to Timaru, and Fonterra.

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