Nerves are growing among Hamilton businesses as Fonterra looks for new premises.

The dairy giant is leaving its central Hamilton building and hasn't committed to staying in Kirikiriroa.

Hamilton Business Association General Manager Vanessa Williams says her understanding is the building is no longer fit for purpose.

She told Heather du Plessis-Allan that they spend a lot of time welcoming businesses into the CBD, particularly large ones with hundreds of employees.

Williams says to actually have one turn around and leave would be devastating.

She says a lot of businesses rely on Fonterra being close by.

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