New Zealand dairy multinational Fonterra has acknowledged the release of the Government’s options paper on the review of the Dairy Industry Restructuring Act (DIRA), which allowed the creation of the co-operative.
The Act regulates Fonterra’s dominance in the market to promote the efficient operation of dairy markets in New Zealand. The Government launched a review of the Act in May and opened it to public discussion on Friday.
Fonterra said in a statement that the Act is a “complex piece of legislation” and that it is important that the review is thorough
“We recognise the significant work that the Ministry for Primary Industries and Minister O’Connor have put into the document and we appreciate their high degree of engagement with industry so far,” the company said in a statement.
Fonterra said it will now consider the document and discuss with farmers about the impact the options may have.
“Ultimately, we all want the same thing – a prosperous and sustainable dairy industry for New Zealand.”
The dairy giant said that it looks forward to working with Government towards updating the legislation.
In 2017, the Supreme Court found that Fonterra breached DIRA by imposing less favourable terms on farmers who previously supplied the failed New Zealand Dairies.