A report has found Fonterra's financial performance has been unsatisfactory since its inception 17 years ago.

The analysis, by dairy industry specialist advisory firm TDB, concludes the co-operative has fallen well short of expectations with revenue growth far less then projected.

The report says if Fonterra had delivered, the share price would be as high as $8.80, rather than below $5 as it is now.

TDB advisory director Phill Barry told Mike Hosking they believe a rethink is required.

"I don't think it is about the co operative, but it is about governance and strategy."

LISTEN ABOVE AS PHILL BARRY SPEAKS TO MIKE HOSKING