Fonterra welcomes Commerce Commission decision

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

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