DIRA Review: Open Country Dairy Warns Against Regulatory "Complacency"
The country's second largest milk processor is warning against 'complacency' during a review of competition regulations in the dairy sector.
NONE OF the proposed changes to the Dairy Industry Restructuring Act will reduce the retail price of milk, say farmers.
Federated Farmers Dairy chairperson Willy Leferink says not one of the changes proposed to the DIRA by the Government will make milk any cheaper in the supermarkets.
He says some supermarkets are selling 2 litre milk at $3.
"At that price, it is identical to what Cole's has been selling milk for in Australia, once you take out our GST and exchange rate differences.
"What concerns me is that people seem to think farmers get all of the value from retail milk sales. I can tell you our share in a one litre carton of retail milk is around 360 millilitres.
"If someone's skimming the cream I'd suggest looking harder at the wholesale and retail ends. How come one supermarket can sell two litres of milk for $3 but another sells an identical bottle for $3.72?
"That's where the margins are, instead of the farmer who produce the milk in the first place."
Leferink wants more competition among supermarkets and processors.
"Precious few of the processors who take this milk, bottle it and then put it onto the shelves of supermarkets or dairies. Too few of these processors get milk from the farmgate and compete locally as they do internationally. We really need to know why," he says.
Dairy processors are ready to further boost New Zealand’s export earnings but want the incoming government to match their ambition with good policy.
Massey University is best placed to solve the “problems” facing the dairy industry, says vice chancellor, Pierre Venter.
Synlait's longest serving employee – a man who joined the Canterbury-based milk processor even before it began processing milk – is now its newest executive.
A dairy industry leader believes eradicating the common and costly disease, Bovine Viral Diarrhoea (BVD) is within reach.
A farmgate milk price of $10/kgMS this season is firming up as milk powder prices soar and the New Zealand dollar weakens.
Federated Farmers has welcomed new rural policies released by ACT, saying they align closely with its own election priorities.

OPINION: The same mainstream media muppets that brought you Jacindamania in 2017 have been flat out pimping for the Opportunities…
OPINION: Your old mate reckons the atrocious way farmers in the UK are treated by their lords and masters in…