[9 May/NZ Herald]

Fonterra has said that it continuing to have to accept all milk from all farms would be a critical part of the Government’s review of legislation. Agriculture Minister, Damien O’Connor, has announced the terms of reference for the review. Fonterra had long pushed back against the DIRA requirement that it take all milk offered to it, which resulted in the company having to spend hundreds of millions on new stainless steel processing capability as annual milk production climbed. Fonterra argued the capital requirement eroded its strategy and helped its international competitors. Synlait said it supported the comprehensive scope of the DIRA review and was pleased it would look beyond the current regulatory framework. Federated Farmers Dairy Chairman, Chris Lewis, added there were no surprises in the review of the terms but detail was scarce.