Dairy review terms of reference released

Minister of Agriculture Damien O’Connor says the review will help the sector get in shape for the future.

The Government also released the terms of reference for a review of the 17-year-old Dairy Industry Restructuring Act 2001 (DIRA), which regulates Fonterra to protect the long-term interests of farmers, consumers and the wider economy. 

“The Ministry for Primary Industries will consult widely throughout the review, including surveys and formal consultation later in the year and I encourage you all to get involved and have your say,” says O’Connor. 

“The review will allow us to take a strategic view of issues facing the dairy industry.

“In particular it will look at open entry and exit for farmers, the raw milk price setting process, contestability for milk, the risks and costs for the sector, and the incentives or disincentives for dairy to move to sustainable, higher-value production and processing.”

O’Connor says the whole dairy sector needs to look ahead to see what trends and potential disruptions are coming our way and get ahead of consumer trends.

“Only through a frank appraisal of the issues will we come to the right conclusions,” he says.

“The dairy industry will be fully consulted throughout the review so that any issues can be given full consideration before any changes happen.

“I look forward to receiving feedback from farmers, dairy processors, consumers and the wider public in the upcoming consultation process.”