[18 February /NZ Herald] Open Country Dairy is questioning the way that Fonterra’s milk price was set in the 2018 season. This is despite the Commerce Commission accepting the price-setting process which must meet both efficiency and contestability elements required by law. Open Country Dairy is of the view that Fonterra’s asset beta was too low which is used in calculating the cost of capital for a milk processor. The flow-on effect of this is that Open Country is claiming that Fonterra ended up paying its farmers a higher price for the milk than is warranted under law. Open Country also claimed in their submission that Fonterra’s sales outside the Global Dairy Trade platform were not transparent. Open Country Dairy is New Zealand’s second biggest milk processor and claim that Fonterra’s dominance means that the market is not contestable. Fonterra acknowledged the claims made by Open Country and suggested they have little merit. They also stated that the current way base milk price is set is working and transparent. The Ministry for Primary Industries is currently analysing 188 submissions on proposals to change the Dairy Industry Restructuring Act.