Fonterra's plan to form an alliance of container freight users to counter the power of shipping lines is being condemned as an attempt at central planning bound to fail, and an example of poor business leadership, importers say.
Fonterra is combining with other exporters, led by Silver Fern Farms, in a limited partnership called Kotahi Logistics to be a "mechanism for the demand" to do business with shipping lines, the suppliers of services.
The Importers' Institute is urging the Commerce Commission to turn down the plan.
"Without exception, every economy that has ever attempted to replace markets with central plans devised by experts has ended up in total failure," the Importers' Institute says.
"Fonterra is New Zealand's biggest exporter. Can't they just use their muscle to achieve those objectives?"