Shareholders are still unhappy about the performance of New Zealand dairy giant Fonterra, according to dairy lobby group Dairy Farmers of New Zealand.

“Shareholders have concerns of Fonterra’s level of operating expenses, the costs of processing and the product mix, as compares with the most efficient company, and the performance of offshore investments,” a report to the group’s annual meeting was quoted by as saying. Overseas investments giving concern included Bonlac, in Victoria.

“When comparisons are made with Westland (Milk Products) and Murray Goulburn, the performance gap with Fonterra is not improving,” the report added.

The report also called for more accurate price signals on the market value of milk. In a regional report, Stuart Borlase, of Nelson-Golden Bay, slammed that fact that Fonterra had the country’s lowest milk payout despite being the nation’s largest company.