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.
Most dairy regions around the country have had a pretty good season so far says Tracy Brown.
Rural leader Mark Hooper has been appointed as an independent director to the NZPork board, bringing extensive farming, governance and advocacy experience to the role.
Opportunity says its land value tax (LVT) is unlikely to force farmers into a position where asset sales or increased debt are required.
Milk powder prices are keeping farmgate prices up, helping processors offset the dip in milk fat prices.
Climate, nature and animal wellbeing make up Fonterra's refreshed sustainability roadmap released last week.
The Government is introducing a new nationwide rural recycling scheme that will significantly increase the recovery of farm plastics from March next year, Minister for the Environment Nicola Grigg announced today.

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