Chinese strategy
OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.
A new bill detailing proposals to oversee Fonterra’s farm gate milk price setting and ensure a more transparent and efficient dairy market was tabled in Parliament yesterday by Primary Industries Minister David Carter.
“Because of Fonterra’s dominance in the New Zealand market, the price it pays its farmers for milk at the farm gate effectively becomes the default price all dairy processors must pay to attract supply from farmers,” says Carter.
“The Dairy Industry Restructuring Amendment Bill will oversee how Fonterra sets the price it pays its farmers, thereby ensuring a competitive and innovative dairy industry.
“The proposed regime will give confidence that the aim of the Dairy Industry Restructuring Act – to drive efficiency in the dairy industry through contestable milk supply – is being met.”
Carter says the bill will primarily embed Fonterra’s current milk price governance arrangements in legislation, require Fonterra to publicly disclose information on its milk price setting and introduce an annual milk price monitoring regime to be undertaken by the Commerce Commission.
The Bill also includes changes that enable Fonterra to move to its proposed Trading Among Farmers (TAF) system, should it choose to.
Carter says potential changes to the Raw Milk Regulations are still being considered and an announcement on these is expected shortly.
A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.
Free workshops focused on managing risk in sharefarming got underway last week.
Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.
Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.
WoolWorks, New Zealand’s largest wool-scouring company, has partnered with the Lions Club of Riverton to help raise money for much-needed repairs to the Southland town’s swimming pool.
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OPINION: Fonterra may have sold its dairy farms in China but the appetite for collaboration with the country remains strong.
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