Pluses and minus with DIRA announcements
6 June, 2019
Federated Farmers sees useful changes and a missed opportunity in the decisions on amendments to the Dairy Industry Restructuring Act 2001 (DIRA) announced today.
“We’re disappointed that open entry provisions won’t be changed, other than relating to new conversions,” Feds Dairy Industry Group Chairperson Chris Lewis says.
“It’s nearly 20 years since this legislation was passed to ensure that with the formation of Fonterra, competition for farmer milk supply, and dairy product choice for consumers, was preserved. The market is now mature enough, and competition among a host of processing companies robust enough, for Fonterra to be given some discretion over who it is required to pick up milk from.”
Today’s decisions announced by Agriculture Minister Damien O’Connor will give Fonterra some leeway over accepting milk from land newly converted to dairy, “and that’s good,” Lewis says. “We await detail on what the definition of a ‘new conversion’ is.
“We’re also pleased that the amended DIRA will give more clarity on when Fonterra can refuse supply when a farmer is well below industry standards relating to the environment, animal welfare, greenhouse gas emissions and the like.
“There are some farmers who have demonstrated their unwillingness to come up to the standard of all the other shareholder/suppliers out there.
“As with other aspects of the government’s announcements, the devil will be in the detail,” Lewis says.
Federated Farmers looks forward to taking part in the consultation process with Select Committee to help ensure the details of the bill are fit for purpose.