Rural round-up

August 15, 2014

Commission releases draft report on 2013/14 review of Fonterra’s base milk price calculation:

The Commerce Commission today released its draft report on Fonterra’s base milk price calculation for the 2013/14 dairy season. The base milk price is the price Fonterra pays to farmers for raw milk.

The Commission is required to review Fonterra’s calculation of the base milk price each year as part of the Dairy Industry Restructuring Act’s milk price monitoring regime. The review assesses if Fonterra’s calculation approach provides incentives for it to operate efficiently and provides for contestability in the market for purchasing farmers’ milk.

The scope of the Commission’s review is only to look at the base milk price, not the retail price that consumers pay for processed milk. . . .

 

Fonterra’s farmgate milk price out of step with efficiency – Pattrick Smellie:

 (BusinessDesk) – The Commerce Commission says Fonterra Cooperative Group’s decision to cut the last season’s forecast payout to farmer shareholders by 55 cents per kilogram of milksolids below the result produced by its Farm Gate Milk Price calculation is not consistent with the milk price regime’s intention to make Fonterra operate efficiently.

However, it says the decision – the first ever taken to vary the payout from the calculated level since the Farm Gate Milk Price regime came into force in 2009 – was consistent with ensuring competitive provision of milk to alternative suppliers, the commission concluded in its annual review of the regime.

Under the Dairy Industry Restructuring Act, which allowed a merger to create Fonterra despite creating a dominant local market player, the commission must monitor how Fonterra sets the price it pays farmers for milk as part of efforts to ensure it’s possible for local dairy market competitors, such as Synlait or Westland Milk, to emerge.

Under the monitoring and reporting regime, the commission has no ability to force any change on Fonterra. . .

 

Latest dairy farm visits reveal poor record keeping:

The Ministry of Business, Innovation and Employment’s Labour Inspectorate has released the results of the third phase of its national dairy strategy, which involved visits to farms that employ migrant workers.

The findings show that while no exploitative conduct was found, a quarter of the farms visited were in breach of employment laws for poor record keeping.

Senior Labour Inspector Kris Metcalf says the visits were part of a long-term operation to check compliance with minimum employment obligations at dairy farms across the country.

“The majority of the 42 dairy farms visited in this phase were meeting minimum employment standards,” says Kris Metcalf.

“However, 11 farms were found to be in breach of their minimum employment obligations which is disappointing. . .

Government migrant dairy worker survey highlights procedure hole:

Following the third phase of the Ministry of Business Innovation and Employment’s (MBIE) dairy strategy, focussed on migrant workers, Federated Farmers knows a sizable minority of farmers still need to meet basic employment law and the Federation is offering to help.

“The latest information from MBIE shows that there has been a significant improvement in the performance of dairy farmers, but far too many are failing to take accurate time sheets seriously enough,” says Andrew Hoggard, Federated Farmers Employment Spokesperson.

“We are pleased MBIE inspectors did not find any exploitative behaviour of migrant workers on the 42 farms they visited. That said we’ve still got a bit of work to do with our guys on record keeping and basic employment practices. . . .

Softening the dairy blow:

• NZ dollar is under pressure
• Interest rate predictions delayed
• Meat sector outlook remains bullish

While eleven of the last twelve dairy auctions have recorded price falls, the sheer magnitude of the falls is bringing other factors in to play, according to the latest ASB Farmshed Economics Report.

“With dairy prices down by 37 percent on a year ago, the NZD has finally come under some pressure” says Nathan Penny, ASB Rural Economist.

“The NZD has passed its peak. We expect the NZD to trade at around 85 US cents for the rest of the year.”

“The dairy price falls are also a major reason why we’ve pushed back our interest rate call.” ASB Economics now expects the next OCR increase in March 2014 rather than their previous call for a December 2014 hike. . .

 

Working group for dairy processing sector:

Primary Industries Minister Nathan Guy has announced the establishment of a working group to develop a ‘roadmap’ on how to meet the future capability needs of the dairy processing sector.

“This was a recommendation of the independent Government Inquiry into the Whey Protein Concentrate (WPC) Contamination Incident last year. It found that our food safety regulatory model for dairy is among the best in the world, but also recommended improving people capability to strengthen the food safety system.

“The inquiry highlighted the shortage of experienced people with processing expertise across the industry’s regulatory sector, and at all levels of the system. . .

 Does Australia want to compete? – Jo Bills :

Recently the Business Council of Australia released a report it commissioned from McKinsey & Co – Compete to Prosper: Improving Australia’s global competitiveness.

It was fascinating reading – taking a helicopter view of the Australian economy and the global competitiveness of industry sectors.

Most of us probably regard Australia as a trading nation, but the McKinsey analysis highlights the fact that our economy remains quite inwardly focussed – while we are the world’s 12th largest economy, we rank 21st in terms of global trade – well behind some that you might assume we should be ahead of.

As part of the study, the McKinsey number-crunchers developed a Relative Competitiveness Score, applied it to all sectors of the Australian economy and found that only one sector – agriculture – stood out as truly competitive. . .

Boost for wilding tree control in Waimakariri:

A group of volunteers dedicated to clearing wilding trees around Flock Hill in upper Waimakariri is to receive a major funding boost, Associate Conservation Minister Nicky Wagner announced today.

Waimakariri Ecological and Landscape Restoration Alliance will receive $309,000 over the next three years from the Department of Conservation’s Community Conservation Partnership Fund.

“Wilding trees are now the most significant threat to biodiversity and infrastructure in the 60,000 hectares of public and privately owned lands in the upper Waimakariri Basin. . .

Forest contractors welcome WorkSafe submission:

Today the government’s safety agency for forestry, WorkSafe NZ, has publicly released its submission to the panel of the Independent Forest Safety Review. The Forest Industry Contractors Association (FICA), the industry group that originally initiated the review, has welcomed the comments from the regulator.

“We’re pleased that some vital issues have been highlighted by Gordon MacDonald’s WorkSafe NZ team,” says spokesman John Stulen of the Forest Industry Contractors Association, “They’ve made some very practical observations vital to making change in our industry.”

Stulen says WorkSafe NZ has been open and frank in their criticism of some shortcomings, yet has also been constructive at the same time. . .

Feed Partnership Set to Shake Up South Island Mag Regime:

South Island dairy farmers can now reap the rewards of a revolutionary new Magnesium product, which is transforming Magnesium use in dairying.

Animal feed ingredient supplier, BEC Feed Solutions, is partnering with South Island animal feed manufacturer and blender, James & Son (NZ) Pty Ltd, to give the region’s dairy farmers convenient access to its Bolifor® MGP+ product.

Bolifor® MGP+ is a unique alternative to messy pasture dusting and laborious daily drenching, and contains the essential minerals Magnesium and Phosphorus in the one product. It’s anticipated thatBolifor® MGP+ will be well received in the South Island, given that farmers, vets and animal nutritionists are observing an increase in Phosphorus deficiency due to the region’s dependency on fodder beet crops and changing land use. . .


Rural round-up

May 30, 2014

AgResearch makes changes to Invermay plans –  Vaughan Elder:

AgResearch has made some changes to its plan to slash jobs at Invermay, but the majority of staff will still be moving north to Lincoln.

Invermay staff, along with those affected by planned restructuring at AgResearch’s other campuses, learnt their fate today, with the organisation making a final announcement – as signalled in today’s Otago Daily Times.

There were some changes made to its plans for the Invermay campus, with three deer researchers no longer relocating to Lincoln and the creation of two new science roles. . .

Give AgResearch a chance:

Federated Farmers understands that with any major decision there will be concern, however, it is asking people to look at the best strategic outcome for New Zealand agricultural science.  Above all, to give AgResearch the chance to reform itself as a 21st Century Crown Research Institute.

“I think farmers should welcome the way AgResearch has listened to reason because Invermay’s future has been enhanced over the original proposals,” says Dr William Rolleston, Federated Farmers Food Production Sciences spokesperson.

“There have been some regional gains for those in the south and north, with the Invermay and Ballantrae hill country farms being kept for sheep, beef and deer research.  Invermay will clearly become the centre for deer research.

“We must remember that this restructure is not this year, next year or even the year after.  We are talking 2017 and while one out of every four scientific or technician roles will be asked to relocate, that means 75 percent will not. . . .

DINZ welcomes finalisation of AgResearch’s Future Footprint:

Deer Industry New Zealand (DINZ) has welcomed announcements, made today by AgResearch, finalising the shape of its ‘Future Footprint’ restructuring.

DINZ Deputy Chair, Jerry Bell, said that it is important that the plan is now finalised, giving certainty to the staff who will be affected, and DINZ was satisfied that the final changes to ‘Future Footprint’ were significant and a good outcome for both Invermay and the deer industry.

“While we accepted the strategic rationale for Future Footprint, we have been concerned throughout that such strategic change can be very disruptive and can contribute to a loss of important people. In that context, it’s great to draw a line under the process.” . .

Consultation on the sale of raw milk to consumers:

The Ministry for Primary Industries (MPI) is asking for public feedback on options for the sale of raw milk to consumers.

MPI’s deputy director general Deborah Roche says any changes would need to balance people’s desire to buy and drink raw milk with the requirement that food safety risks are properly dealt with.

“It’s clear that there is still a demand for raw milk and that more and different options for its sale need to be considered. It’s important people have the opportunity to comment on this matter so that MPI can consider all viewpoints before making any recommendations for change. I would encourage anyone that has an interest in raw milk sales to consumers to have their say,” Ms Roche says. . .

New president for Federated Farmers Marlborough:

Federated Farmers would like to welcome our new Marlborough provincial president, Greg Harris, who is replacing Gary Barnett, following their Annual General Meeting.

“Greg has been a part of Federated Farmers for 20 years and is well versed on the issues surrounding the Marlborough region, having stepped up from the provinces’ Meat & Fibre Chairperson role,” says Bruce Wills, Federated Farmers National President.

“I would like to thank outgoing provincial president, Gary Barnett for his service to the province and Federated Farmers; he has been an integral part of the Federation.

“We are in a year of change within the Federation, with leadership changes throughout the organisation both nationally and provincially, Greg is an incredibly passionate advocate for the farming community and I know he will do a fantastic job,” said Mr Wills. . .

Rabobank recruits new animal proteins analyst:

Rabobank welcomes new-comer Angus Gidley-Baird, appointed as a senior animal proteins analyst to cover the sheep and beef sectors, joining the bank’s Australia & New Zealand Food & Agribusiness Research and Advisory division.

General manager of Rabobank’s Food & Agribusiness Research and Advisory Luke
Chandler said Angus’ appointment brought to the team a great depth of agricultural knowledge, as well as mainstream political and economic policy awareness.

“Angus’ entire career has been spent in agribusiness and throughout this time, he has gained a very strong foundation in the sorts of issues impacting farmers and industry stakeholders all the way through the supply chain,” Mr Chandler said. . .

Orange roughy ecolabel to assist exports:

Sealord has welcomed the next step in the journey to have New Zealand orange roughy globally recognised as a sustainable seafood choice.

Three of the main orange roughy fisheries have been submitted for assessment by the Marine Stewardship Council to verify if they can carry the world’s best known marine ecolabel.

New Zealand’s quota management system has allowed industry and government to work together to achieve this and Sealord Fishing General Manager, Doug Paulin, says that MSC certification will provide an additional assurance to customers.
“Globally, New Zealand seafood has a great reputation and Sealord customers will be supportive of this new measure to show retailers and customers alike orange roughy is a sustainable choice,” said Paulin. . .

Boutique Wine Festival Brings the Best of New Zealand to Auckland:

After a successful launch in 2013, the second annual New Zealand Boutique Wine Festival is set to return to Auckland’s Imperial Building on Sunday 15 June 2014.

This year’s festival will see 21 boutique vineyards from around New Zealand showcasing more than 200 wines across a huge range of varietals, creating a one-of-a-kind cellar door experience.

Throughout the day, event attendees will be able to explore wines from different regions, enjoy fantastic food and wine pairings, great live music, and participate in blind tasting seminars throughout the day. . .


Rural roundup

December 14, 2013

Storm-hit farmers feel heat - Annette Scott:

Repairs to wind-battered irrigation systems are progressing but for many Canterbury farmers being back on tap will come too late.

Delayed irrigation has reached crisis point and the economic consequences could rival last year’s drought.

The picture is grim for farmers whose irrigators require complicated rebuilds.

Cropping farmers in particular are counting lost dollars by the day because crops desperately need water. . .

Cottingley and Bradford wool firm spins a successful yarn – Chris Holland:

It used to be said that for woolmen ‘every silver lining has a cloud’ but that’s certainly doesn’t apply to Martin Curtis and his team at Curtis Wools Direct, the Cottingley-based wool merchants he runs with his brother Simon and which owns Howarth Scouring and Combing in Bradford.

Wool may be as old as the hills – and the scale of the processing that produced much of Bradford’s wealth is miniscule compared with the industry’s heyday – but optimism and evangelism about the qualities of this natural fibre and its commercial future dominate their thinking. . .

Raw milk all the rage - Laird Harper:

A milk revolution is bubbling up in Taranaki.

Touted as being a “powerhouse food”, raw cow’s milk keeps many vitamins, enzymes and probiotics often considered lost in the processing plant.

But it’s not a concept lost on Dolly’s Milk owners Peter and Margaret Dalziel, and Cindy and Kevin Death.

Hunting for something new, the group stumbled across the idea while flicking through a magazine.

And as they researched the rules and ways to safely distribute the product, they knew they had to get out in front of this fledgling industry. . . .

Raw milk option expands into South Canterbury – Jacqui Webby:

South Canterbury consumers looking for a choice in the type of milk they use will soon have another option.

Early next year, Timaru dairy farmers Stu and Andrea Weir, and son Mitch, will open a raw-milk outlet at their property in Fairview Rd.

The couple, who milk a herd of about 200 mainly friesian cows, have long been interested in the concept of fresh raw milk and were quick to initiate franchise discussions to open a Timaru outlet with Nelson-based Village Milk. . . .

Bumper Fonterra pay-out boosts farm values at auctions:

Fonterra’s bumper payout for dairy milk solids has underpinned the multi-million dollar sale of two large scale dairy conversion farms in Northern Hawke’s Bay.

The two farms sold for a combined value of more than $12.5million after some hectic bidding in the auction room of Bayleys Napier last week – with multiple parties bidding on each of the properties. Some 58 farmers, stock managers, accountants and rural banking specialists from across the Hawke’s Bay were in the auction room to watch proceedings.

Bidding on the 351 hectare Ben Alpin farm opened at $3.9million. After 16 bids from four potential buyers, the property sold under the hammer for $5.020million. . .

Synlait Milk expects to outperform financial targets:

Synlait Milk expects to outperform financial targets on the basis of a favourable product mix.

Current international dairy commodity price differentials are larger than usual, and continue to favour Synlait’s milk powder and AMF dominant product mix. The company expects that ongoing demand, particularly from China, will mean that this will be maintained for much of the current season.

While it is still early in the season, recent announcements also make it clear that the current season’s milk price is likely to be less than the company was expecting.

John Penno said that Synlait’s policy is to pay our contract suppliers a fair market price.  . .

Strong finish for Young Farmer at Rural Ambassador competition:

New Zealand Young Farmers Vice-Chairman Cam Lewis finished runner up at the recent trans-Tasman Rural Ambassador competition in Feilding, 6-8 December.

The top honour and a $5000 travel grant were awarded to Prue Capp, an equine dentist from New South Wales, and in third place was Samantha Neumann from South Australia.

Mr Lewis, a dairy farmer from Levin, keeps the kiwi success in this competition going strong. The 2012 winner was another Young Farmer member and 2013 ANZ Young Farmer Contest Champion, Tim Van de Molen.

Mr Lewis won the Royal Agricultural Society’s Rural Young Achiever Award at the RAS Conference in Christchurch earlier this year and was the only representation from New Zealand in the Rural Ambassador competition. The other six competitors were the top Australian state finalists. . .

And from the Farming Show:

 The Farming Show's photo.

Com Com gives Fonterra tick

August 16, 2013

The Commerce Commission has given Fonterra  a tick for its raw milk price.

This is the second of two annual reviews the Dairy Industry Restructuring Act 2001 (DIRA) requires the Commission to undertake. The Commission completed the first review in December 2012 on Fonterra’s Milk Price Manual.

The base milk price review focusses on the Commission’s assessment of the extent to which Fonterra’s 2012/13 base milk price calculation is consistent with the purpose of the milk price monitoring regime set out in DIRA.

“The Commission specifically considered the extent to which the assumptions adopted, inputs and process used to calculate the base price provide an incentive to Fonterra to operate efficiently while providing for contestability in the market for the purchase of milk from farmers, “ said Sue Begg, Commerce Commission Deputy Chair.

“The Commission’s view is that these statutory tests are largely met,” said Ms Begg.

The Commission has identified one assumption that does not appear to be practically feasible.  This relates to the assumed energy usage rates, which rely on data generated during peak capacity utilisation and therefore do not take account of variable plant utilisation across the season.

There are also assumptions that the Commission is unable to come to a conclusion on, given the information available to it at this stage. However, having regard to the direction and potential size of the impact these assumptions might have on the base milk price calculation, the Commission does not consider them to have a significant impact on the overall conclusion.
This draft report is being provided to Fonterra for comment. In addition, the Commission welcomes feedback from other interested parties on the draft conclusions and supporting analysis in this draft report. Any comments must be provided by 5:00pm on Thursday 29 August 2013. . .

In plain English this means the Commission has found the milk price to be fair which is what Fonterra has always said.


Rural round-up

January 7, 2013

Rabbit rise may bring 1080 response – Gerald Piddock:

Environment Canterbury’s annual count shows that rabbit numbers are on the rise in the Mackenzie Basin and Omarama.

The regional council monitors rabbit trends every year and the latest draft analysis showed a noticeable increase of rabbits in the Mackenzie Basin, eastern Mackenzie around Haldon Rd and in Omarama.

ECan’s biosecurity team leader, Brent Glentworth, expected there would be some large 1080 operations this summer, particularly on the eastern side of the Mackenzie, as land owners battle to keep rabbit numbers down. . .

UK biofuels influence NZ wheats:

European, notably UK, breeding programmes, growers at PGW’s agronomy group field day last week heard.

 Europe is normally a regular exporter of wheat, but three massive biofuel plants have created an extra 2mt of demand for wheat, preferably high starch soft milling types that maximise ethanol yield, Limagrain’s UK director of sales and New Zealand coordinator, Alastair Moore (pictured), explained.

“We’re seeing quite a drive to the soft wheat end and a lot of the new varieties recommended [in the UK] were in that category.” . .

Insecticide removal would hit crops hard – Gerald Piddock:

Seed and cereal farmers face a major risk to their productivity and profitability from the removal of organophosphate insecticides from the market.

Current control practices used by farmers, particularly during crop establishment rely heavily on organophosphates which are currently the subject of a review and re-regulation by the Environmental Protection Authority (EPA).

Organophosphate insecticides are used by farmers to control grass grub, one of the country’s most destructive plant pests. . .

Van der Heyden works till end:

OUTGOING FONTERRA chairman Henry van der Heyden will be using the next five months as a director to help execute the co-op’s strategy refresh.

Van der Heyden is defending his decision to stay on the board after relinquishing the chairmanship to John Wilson. He says the decision has been taken in the interest of the co-op. Some shareholders have questioned the decision.
Van der Heyden says he has always done what is right for Fonterra. . .

Kirkwood takes vote for council – Gerald Piddock:

Oamaru dairy farmer Greg Kirkwood is the new Fonterra Shareholders councillor for ward 32 in Southern Canterbury.

Mr Kirkwood was elected to the council ahead of Geraldine dairy farmer Ad Hendriks.

He takes over from Desiree Reid, who retired from the position by rotation.

Mr Kirkwood said he put his name forward for the Shareholders Council because he wanted to get involved more in the co-operative.

Raw milk health risks under review:

Since the 1950s, New Zealand’s commercial milk supply has been pasteurised – treated with heat to kill bacteria – and most of us have swallowed the official position, that untreated milk is potentially dangerous to drink.

But there’s a growing trend of consumers wanting their food in a natural state, and that includes milk. They say raw milk is not only safe, it’s better for you, and a major study is underway to see if they’re right.

Most of us buy our milk pasteurised and from a dairy or supermarket fridge. But for mums like Angela Jones that’s changing. She’s one of thousands of townies making a regular trek to a trusted farmer to buy raw milk at the farm gate. . .


Rural round-up

December 14, 2012

Food and beverage stars for NZ to hitch its wagon to – report – sticK:

There’s not that many reports you can sit down and study and go – uumm, interesting.

But Auckland-based Coriolis has done it (again), and their ‘Investors guide to emerging growth opportunities in NZ food and beverage exports’ is, and I don’t say this lightly, quite fascinating.

The company has deliberately taken its methodology and report-back from a (potential) investor’s point of view.

The simple objective was to find the next ‘wine’ – such as that fledgling industry existed 25 years ago.
Over 500 food & beverage items, based on export trade codes, were screened down to 25 candidates for stage II in-depth investigation. . . .

Strong Finish To Spring Selling Season:

Summary

Farm sales increase 9.8 per cent compared to October
Median $/ha price rose 11.9 percent compared to November 2011
After noticeable period of absence first farm buyers active in Waikato and Taranaki
Lifestyle property sales lift 24% compared to November 2011

Data released today by the Real Estate Institute of NZ (“REINZ”) shows there were 25 more farm sales (+9.8%) for the three months ended November 2012 than for the three months ended October 2012. Overall, there were 281 farm sales in the three months to end of November 2012, compared with 315 farm sales in the three months to November 2011, a decrease of 34 sales (-10.8%). 1,417 farms were sold in the year to November 2012, 23.4% more than were sold in the year to November 2011. . .

Cheese first made at least 7,500 years ago – Maria Cheng:

Little Miss Muffet could have been separating her curds and whey 7,500 years ago, according to a new study that finds the earliest solid evidence of cheese-making.

Scientists performed a chemical analysis on fragments from 34 pottery sieves discovered in Poland to determine their purpose. Until now, experts weren’t sure whether such sieves were used to make cheese, beer or honey.

Though there is no definitive test for cheese, Richard Evershed at the University of Bristol and colleagues found large amounts of fatty milk residue on the pottery shards compared to cooking or storage pots from the same sites. That suggests the sieves were specifically used to separate fat-rich curds from liquid whey in soured milk in a crude cheese-making process. . .

Debt is good under some circumstances – Allan Barber:

After my column last week about meat industry debt levels, Keith Cooper, CEO of Silver Fern Farms, took me to task for incorrectly reporting the situation with Silver Fern Farms’ debt facility.

I stated that these expired in September 2012 and therefore the company was operating on a temporary extension. The correct position was that the debt facility was originally negotiated for two years from September 2010 and consequently due to expire in September 2012. This remained the position at balance date in September 2011. However in the 2012 annual report, the facility was stated as expiring on 31 December 2012. . . .

Farmgate raw milk sales to continue:

Farm gate sales of raw milk will continue and the amount that can be purchased is likely to increase, Food Safety Minister Kate Wilkinson said today.

Farmers will also be exempt from the current requirement to have a costly Risk Management Programme for farm gate sales of raw milk and will instead need to adhere to certain animal health and hygiene requirements.

“The current Food Act allows people to buy only up to five litres of raw milk at the farm gate to drink themselves or give to their family,” Ms Wilkinson says.

Consultation carried out by the Ministry for Primary Industries (MPI) on possible changes to rules for raw drinking milk sales attracted nearly 1700 submissions. . .

ANZCO embarks on group-wide energy management programme:

One of New Zealand’s largest exporters is set to save more than $2 million a year and enhance its global reputation as a sustainable producer through a company-wide energy management programme.

EECA Business today announced it would support the initiative over two years to help ANZCO generate long-term energy savings in its New Zealand plants.

With annual sales of NZ $1.25 billion, ANZCO Foods Ltd processes and markets New Zealand beef and lamb products around the world. The firm employs over 3,000 staff world-wide and has 11 meat processing plants in New Zealand. . .

Feedback sought about regulation of dairy herd improvement

The Ministry for Primary Industries (MPI) is looking for feedback on the rules surrounding the New Zealand dairy herd improvement industry.

The New Zealand dairy industry has been a world leader in herd improvement, and its ability to trace the performance of the national herd – through the dairy core database – has been central to that success.

Studies have shown that genetic gains through dairy herd improvement have accounted for about two thirds of the sector’s productivity over the last decade. . . .


New raw milk regs ok

November 15, 2012

When proposed changes to raw milk regulations were announced earlier this year Fonterra and many shareholders were less than impressed.

However, the proposals were just that and open to consultation which has produced changes most in the industry will accept as okay.

Primary Industries Minister David Carter today announced amendments to the Raw Milk Regulations, the rules by which independent milk processors can access raw milk from Fonterra.

“The Regulations ensure dairy processors can access raw milk when they are starting up and aim to support competition in domestic dairy products,” Mr Carter says.

“The changes follow an extensive consultation and review process on how best to achieve a fair and efficient dairy market in New Zealand.”

The key amendments are:

  • Large independent processors who collect a significant quantity of milk directly from farmers will have a three-season limit for accessing regulated milk;
  • The total quantity of milk available under the Raw Milk Regulations will be set at approximately five per cent of Fonterra’s milk supply, as provided for in the legislation;
  • A range of maximum quantities will apply to processors accessing milk under the Raw Milk Regulations in different months of the season to reflect the seasonal nature of milk production;
  • Processors who do not take much, or any milk, directly from farmers will be able to pay a fixed price for milk accessed under the Raw Milk Regulations and will not be subject to the “wash-up” process at the end of the season.

The aim of the changes was to foster competition without being unfair to Fonterra and I think that’s been achieved.


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