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Innovation in the dairy industry : NRM

Little, Vicki(2005-01-01)

Abstract

Calf rearing is a major part of the New Zealand dairy and beef market. It consists of two segments, dairy farmers and professional calf rearers. The dairy farmer rears heifer calves for herd replacement. Depending on the market value of whole milk, the dairy farmer will either feed whole cow’s milk to baby calves, or purchase a milk powder known as Calf Milk Replacer (CMR). The other calf rearing segment, professional calf rearers, buy calves from dairy farmers and have little access to whole milk. As a result, professional calf rearers must buy a CMR to feed their calves. The New Zealand CMR market is valued at around $NZ35 million (source: MW Economic Service). Historically, two dominant dairy companies manufactured CMR. However, in 2001 these two dairy companies merged as part of the formation of Fonterra, NZ’s single largest company and a vertically integrated global agribusiness.

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Case Description
Business Case Study NoUA-2005-020
Number of Pages3
CategoryHistorical narrative; Mini case
Teaching NotesTeaching notes available
CompanyNRM (Northern Roller Milling Company Limited)
Setting - CountryNew Zealand
IndustryAgriculture

Source
SourceAuckland, NZ. Publisher: University of Auckland Business Case Centre. Pages: 1 - 4