The high price of milk in New Zealand may claim another victim with Olam International, the Singaporean backer of Open Country Dairy, warning it may bail from its investment if a commission of inquiry into milk prices here doesn’t create a level playing field.

The high price of milk in New Zealand may claim another victim with Olam International, the Singaporean backer of Open Country Dairy, warning it may bail from its investment if a commission of inquiry into milk prices here doesn’t create a level playing field.

In a statement filed with the Singapore Stock Exchange last week Olam said the “surprisingly high” milk price announced by Fonterra had killed any chance of a profit at Open Country – of which it owns 25 percent.

Olam International says it is likely to exit its investment if a commission of inquiry into domestic milk prices in New Zealand doesn’t create a fair marketplace.

Open Country Dairy is expected to make a loss for the full year. 

Fonterra which controls more than 90 percent of the domestic market in New Zealand also sets the milk price in New Zealand.