Hon David Carter
Minister for Primary Industries
27 March 2012
Dairy industry restructuring bill tabled
A new bill detailing proposals to oversee Fonterra’s farm gate milk price setting and ensure a more transparent and
efficient dairy market was tabled in Parliament today by Primary Industries Minister David Carter.
“Because of Fonterra’s dominance in the New Zealand market, the price it pays its farmers for milk at the farm gate
effectively becomes the default price that all dairy processors must pay to attract supply from farmers,” said Mr
“The Dairy Industry Restructuring Amendment Bill will oversee how Fonterra sets the price it pays its farmers, thereby
ensuring a competitive and innovative dairy industry.
“The proposed regime will give confidence that the aim of the Dairy Industry Restructuring Act – to drive efficiency in
the dairy industry through contestable milk supply – is being met.”
Mr Carter said the Bill will primarily embed Fonterra’s current milk price governance amendments in legislation, require
Fonterra to publicly disclose information on its milk price setting and introduce an annual milk price monitoring regime
to be undertaken by the Commerce Commission.
The Bill also includes changes that enable Fonterra to move to its proposed Trading Among Farmers (TAF) system, should
it choose to.
Mr Carter said potential changes to the Raw Milk Regulations are still being considered and an announcement on these is
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