21 April, 2006
Fonterra welcomes Commerce Commission decision
Fonterra has welcomed today's Commerce Commission decision ordering Open Country Cheese to pay it more than $800,000.
The decision, which found Open Country Cheese in breach of its contract with Fonterra and ordered the company to meet
its commitments, follows a complaint to the Commission by Open Country Cheese concerning the price it pays Fonterra for
milk supplied under the terms of the Dairy Industry Restructuring Act.
Fonterra Director Milk Supply Barry Harris said the formula for calculating the wholesale milk price in the legislation
was clear and straightforward, and Fonterra had always been confident its pricing was in line with both the letter and
the intent of the legislation.
"The intent of the legislation is to ensure a ready supply of raw milk at a fair price, and this is clearly being
achieved," Mr Harris said.
ENDS