Westland Milk reports positive season
"I'm more positive now than I was two or three months ago." That's the view of Richard Wyeth, chief executive of Hokitika-based Westland Milk Products (WMP).
WESTLAND MILK Products chief executive Rod Quin says the DIRA Bill as it stands disadvantages his co-operative. But he says he is broadly supportive of it.
Presenting Westland's submission to the primary production select committee, Quin emphasised the need for a level playing field which allowed for genuine competition.
"We see in the bill some aspects which favour Fonterra over other industry processors and we want to see a level playing field."
Quin says Westland, in common with the IDPG, wants the milk price setting done off 'actuals'.
"By that we mean actual product mix, actual prices and actual operating costs. We've seen arguments from Fonterra saying it's driven mainly off prices. I accept they are using actual prices – they are not using actual product mix and they are not using operating costs. It's a very theoretical model they have designed and are implementing but that's not a healthy outcome from our perspective."
Quin submitted that Fonterra's dominance has necessitated DIRA and is reflected in its 'purpose statement'. "But to date DIRA has failed to regulate Fonterra's activities effectively and further direct intervention is required to support the development of a competitive market for farmers milk. The bill must not permit the setting of a base milk price by Fonterra using an 'optimised model' which produces a higher milk price than Fonterra's actual performance. Instead what is required is a base milk price that reflects their actual performance."
Quin posed a question to the Government members on the committee, asking them just what they wanted – one large dominant player or genuine farmgate competition.
"We have struggled with some of the comments in the amendment bill to see what the Government is actually after here. Some parts of the bill appear to give Fonterra a competitive advantage and we are concerned about that.
"It's not a case of Westland saying it wants Fonterra weakened; all we want is a level playing field."
Two butcheries have claimed victory at the 100% New Zealand Bacon & Ham Awards for 2025.
A Taupiri farming company has been convicted and fined $52,500 in the Hamilton District Court for the unlawful discharge of dairy effluent into the environment.
The Climate Change Commission’s 2025 emissions reduction monitoring report reveals steady progress on the reduction of New Zealand’s climate pollution.
Another milestone has been reached in the fight against Mycoplasma bovis with the compensation assistance service being wound up after helping more than 1300 farmers.
The Government’s directive for state farmer Landcorp Farming (trading as Pamu) to lifts its performance is yielding results.
The move to bring bovine TB testing in-house at Ospri officially started this month, as a team of 37 skilled and experienced technicians begin work with the disease eradication agency.
OPINION: Will synthetic milk derail NZ's economy?
OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…