The author of a Fonterra-funded report into the dairy sector has defended his work in the face of criticism from New Zealand’s independent processors.

United States economic firm Compass Lexecon produced a report last week which found that independent processors have thrived in the New Zealand marketplace since Fonterra was formed in 2001. 

Further, it found that the way Fonterra calculated the milk price is sound.

While independent processing companies had criticized the report its head author, Professor Robert Willig, has told New Zealand media it is sound.

Professor Willig told Businessday.co.nz, that since 2008 there had been an increasing trend towards self-sufficiency in the marketplace and that independent processors obtain 90% of their raw milk, direct from farmers.

He said the independent processors were seeking a lower farmgate price in order to boost their own profits. 

Country99 TV will be speaking with Fonterra’s chief financial officer, Jonathan Mason, about the report and the company’s reaction to the claims of the independent processors.