An economist says the average New Zealand dairy farm could lose $43,000 if the legal action being brought against Fonterra by food company Danone is successful.
The French company said last year's botulism scare involved serious failings on Fonterra's part and it has terminated its supply contracts with the dairy co-operative.
The food giant is taking High Court action in New Zealand and has also lodged arbitration proceedings in Singapore.
ANZ Bank economist Con Williams said there are reports Danone will be seeking close to $NZ500 million. He said the figure is more than half Fonterra's 2013 earnings and would cost each farmer about $43,000 in losses.
