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Changes To Dairy Regulations

14 December 2009

NEW ZEALAND - Agriculture Minister David Carter has released a consultation document ahead of the expiry of the Dairy Industry Restructuring Act (DIRA), created in 2001 that allowed the formation of Fonterra.

According to National Business Review, Mr Carter said previous dairy related consultations related to the Act’s raw milk regulations, but this round would focus on pro-competition regulations.

He said in a statement that the Act was never indented to be permanent in nature.

“But before it is allowed to expire, it is necessary to take stock and consider the likelihood of the New Zealand dairy markets operating efficiently after the time the pro-competition provisions of the Act end.”

The consultation process is avoiding issues relating to stage three of Fonterra’s capital restructuring process.

Stage three would create a market for share trading among dairy farmer suppliers.

“Fonterra’s capital restructuring proposal will require amendments to the [Act] and the government will ensure that, whatever the regulations are, farmers will retain their ability to freely enter and exit the Fonterra co-operative.”

Submissions close on February 12 and the Ministry of Agriculture and Forestry was due to report back to the government during the first quarter of 2010.

TheCattleSite News Desk


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