NZ dairy farmers caught in environmentalists' fight against palm oil industry

Wellington

THE world's biggest dairy exporter, New Zealand's Fonterra, has found itself caught in the crossfire of an unexpected new controversy: a global environmental campaign against the destruction of rainforests.

The country, which prides itself on its green image, has become a top buyer of palm kernel expeller or PKE, a by-product of the palm oil industry, which is under attack over deforestation, choking fires and habitat destruction in South-east Asia.