Milk from the Van Dairy Group, which owns 23 farms in Tasmania is picked up by Fonterra.
Now media reports suggest the company could sell 10 farms as it struggles to clean up its act.
The Australian Environmental Protection Agency has launched an investigation into alleged animal abuse and overstocking of cattle, which it is alleged is causing effluent systems to fail and damaging nearby waterways.
A series of confidential documents, photographs and accounts from employees and locals appeared to show the conditions deteriorated after the 2016 takeover by China’s Moon Lake.
