Unbundling the debate over bundling in the dairy industry

Lewis Evans and Graeme Guthrie

No 374303, Competition & Regulation Times from New Zealand Institute for the Study of Competition and Regulation

Abstract: Building continues to be controversial in the co-operative dairy business. Bundling is the term for lumping together the payment (per kg of milk) to farmers for milk production, with a return from processing. Bundling has a very long history in New Zealand, however, the gradual introduction of fair value share pricing by dairy co-operatives in the 1990's, continued by Fonterra, and combined with Fonterra's valuation process, provides a separation of payments for off-farming processing from those for milk supply that can be expected to significantly improve the economic performance of the dairy industry.

Date: 2002-04-01
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Persistent link: https://EconPapers.repec.org/RePEc:vuw:vuwcrt:374303

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