INDEPENDENT NEWS

Process begins for review of Fonterra’s milk price

Published: Mon 9 Jun 2014 09:09 AM
Commission begins process for the 2013/14 review of Fonterra’s milk price calculation
The Commerce Commission today released a paper outlining the proposed process and timeline for a review of Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is what Fonterra pays the farmers who supply them milk.
The Commission is required to review Fonterra’s calculation of the base milk price each year and 2013/14 is the second time the Commission will undertake a calculation review. The review will assess the extent to which Fonterra’s approach provides incentives for it to operate efficiently while providing for contestability in the market for purchasing farmers’ milk. The scope of the review is to only look at the base milk price, not the retail price that consumers pay for milk.
The Commission is proposing to build on last year’s review by focusing its analysis this year on the issues outstanding from previous reviews and any areas where Fonterra has changed its approach.
“The big change for this year’s review is that Fonterra is proposing to pay less than the milk price calculated under the 2013/14 Milk Price Manual,” said Commerce Commission Deputy Chair Sue Begg.
“Our assessment approach may differ from last year as a result, but we haven’t formed any view yet. We will reach a view once Fonterra provides us with its statutory information on 1 July 2014 and we will also seek the views of interested parties at that time,” said Ms Begg.
The Commission welcomes comments on the process outlined in the paper by Friday 20 June 2014. The draft report will be issued by 15 August 2014, with the final report expected by 15 September 2014.
The process paper can be found on the Commission’s website at: www.comcom.govt.nz/review-of-milk-price-manual-201415-season
ends

Next in Business, Science, and Tech

Australian bushfires continue to blaze – Expert Reaction
By: Science Media Centre
Higher retail consumption lifts GDP
By: Statistics New Zealand
Fairer pay with minimum wage rise for quarter of a million
By: New Zealand Government
Tourism and Environment: Pristine, popular... imperilled?
By: Parliamentary Commissioner For The Environment
Gordon Campbell on the Aussie bush fires and Suleimani
By: Gordon Campbell
Bushfire Crisis: Climate Politics Turning Point Aus Needs?
By: The Conversation
Scott Morrison: the bushfires demand a climate policy reboot
By: The Conversation
Incendiary Extinctions: Australian Fires
By: Binoy Kampmark
Aussie bushfire smoke reaches NZ – update 2nd Jan 2020
By: NIWA
2019 NZ's fourth warmest year on record - Expert Reaction
By: Science Media Centre
2019 second hottest year on record, UN confirms
By: UN News
Fossil Fuel Companies Called On To Foot Australia Fires Bill
By: Eoin Higgins
GDP growth reflects a strong economy
By: New Zealand Government
NZ in ‘GDP per person recession’ under Labour
By: New Zealand National Party
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media