“In many of our consumer markets, we are expecting intensified...

“In many of our consumer markets, we are expecting intensified competition in the second half – particularly in Australia – and in Asia we are seeing signs of demand slowing,” said Mr Spierings

(Spiering is in charge of Fonterra )

Given Fonterra's 11.8B market cap there is an easy way to deal to competition ...swallow them up.
Bega with a cap of $395M and gearing of 44% ,may be restriceted from increasing its holding, of 17%
Murray Goulburn as a coop also holds 14.5% up from 12% last year bit may also lack the drive to buy WCB out.

The weaker $A to the $NZ would make a buy out by Fonterra cheaper and the weaker $A gives WCB as a potential Fonterra subsidiary a competitive export advantage reinforced by its large inventory carried forward from the previous half year.