Federated Farmers submission on Proposed changes to the Dairy Industry Restructuring Act 2001 and Dairy Industry Restructuring (Raw Milk) Regulations 2012

Federated Farmers supports a review of the state of competition being done in five years time (2021/22) and recommends that Fonterra’s market share threshold be reset at 70 percent, where independent processors (IPs) achieve a 30 percent market share in the North Island or South Island.

Federated Farmers recommends that, with regard to the Raw Milk Regulations:

-Large (over 100ML per annum), export focused (more than 50 percent) IPs cease to be eligible for regulated raw milk (Option 2);
-That this rule comes into force for the 2018/19 season (as opposed to the suggested 2019/20 season):
-The volume available for IPs be reduced to 20ML by 2020/21 (Option 3);
-The amount available across the season as set out in S6 (1) and 6 (2) of the Raw Milk Regulations be scaled down accordingly.
-The forecasting flexibility for regulated raw milk be reduced (Option 4)