Print this page
Friday, 24 July 2020 15:24

DIRA changes get the green light

Written by  Sudesh Kissun
Fonterra will no longer have to accept all applications from dairy farmers wanting to become shareholders and supply milk to the co-op. Fonterra will no longer have to accept all applications from dairy farmers wanting to become shareholders and supply milk to the co-op.

Parliament has removed the open entry and exit provisions of the Dairy Industry Restructuring Amendment Bill (DIRA).

This removes the requirement on Fonterra to accept all applications from dairy farmers wanting to become shareholders and supply milk to Fonterra, or re-enter after leaving the cooperative.

Fonterra had been pushing for this change while independent processors like Open Country Dairy and Miraka wanted the provisions retained. Fonterra wanted the provisions changed to have more flexibility not to accept milk based on sustainability and environmental factors.

Agriculture Minister Damien O’Connor says the primary production select committee recommended that the open entry and exit provisions be removed.

“I agree with the committee on this point,” he says.

O’Connor says the dairy sector has changed considerably since 2001.

“The amendments we have made to this very aged legislation ensure this regulatory regime puts the sector in the best possible position in a post-Covid world,” O’Connor said.

“The Government is committed to building a modern and productive economy, and that means having fit-for-purpose legislation. We want to ensure the DIRA remains fit for purpose in a changing economic and social environment, and continues to deliver benefits O’Connor says the Government is determined to ensure the industry moves milk up the value chain. 

“This change will enable Fonterra to invest in that higher-value end. 

“The new and improved DIRA Bill will serve our dairy sector, and New Zealand, well for many years to come.”

More like this

Is he the right Guy for Fonterra?

Former Primary Industries Minister and Fonterra board aspirant Nathan Guy believes his relationships with bureaucrats in Wellington will help the co-op’s farmers immensely.

Fonterra back in the black

Fonterra chief executive Miles Hurrell says 2019/20 was a good year for the co-op, with profit up, debt down and a strong milk price.


Look out for rural communities - RWNZ

Rural Women NZ is calling for a commitment to improving the health and well-being of rural families and enhancing rural communities’ reliance from all candidates at this year’s general election.


Prices expected to wax and wane

Expect more of the same as dairy prices on Global Dairy Trade (GDT) broke a two-month drought and posted an increase last week.

Beef+Lamb pushing for changes

Farmer-good organisation Beef+Lamb NZ (BLNZ) says it will continue to advocate for changes to the new fresh water regulations.


Live cattle exports in limbo

The fate of 28,000 cows in quarantine in New Zealand and supposedly destined for China in the coming weeks hangs…

Farm values down — REINZ

A floating and volatile situation – that’s how the Real Estate Institute of NZ rural spokesperson Brian Peacocke describes the…

Putting farmers first

The NZ agriculture sector is more than just a job for CRV Ambreed’s new managing director James Smallwood.

Graziers quitting!

Some Southland farmers who graze dairy cattle in winter say they will not do it next year.

Machinery & Products

Mowers get a makeover

Well known throughout New Zealand over the past 18 years, Pottinger has redesigned its rear-mounted Novadisc mowers to incorporate a…

Hardy spotlight

High quality, reliable lighting is essential for anyone involved in agriculture or the great outdoors.

Simmm twin water blasters

Italian made Simmm Power Cleaner 100/11 and Power Gun 100/11 single-phase (230 volt) electric water blasters are proving popular in…

OPD argument raging on

A stoush is brewing with the Federal Chamber of Automotive Industries (FCAI) heavily criticising Farmsafe Australia’s recent Safer Farm Report.