A new international player is determined to snap up Fonterra dairy farmers, as competition intensifies.

Fonterra farmers have put up signs featuring the slogan 'A proud Fonterra farmer' in response to Singapore-based OFI (Olam Food Ingredients) setting up in Waikato.

Fonterra farm source group director Anne Douglas says Fonterra sets the benchmark for dairy prices, and OFI will respond accordingly.

"If you look at how the co-operative dairy model works, we sit here every day looking to maximise milk price and return for our dairy farmers."

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