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.
The Royal New Zealand College of General Practitioners (the College) and Hauora Taiwhenua Rural Health Network are calling for investment in a proposed new training pathway for rural GPs, warning that many rural practices are struggling to recruit while a large share of the existing workforce nears retirement.
Federated Farmers has called on Central Otago District Council (CODC) to drop or vote down a plan to truck sludge from Alexandra and Cromwell to farmland near Lauder, warning it would compound an "outrageous" situation created by a separate council's decision weeks earlier.
Synlait has swung to second-half profit as operations stabilise, but the dairy processor still posted a $75.4m annual loss.
LIC shareholders have elected a new North Island representative to the co-operative's Board, along with five representatives to its Shareholder Reference Group (SRG), following the company's Annual Meeting held in Invercargill.
Farmers across parts of Southland and South Otago are continuing to deal with difficult conditions after a prolonged run of wet weather, with pressure building around feed supply, stock management, pasture damage, farm infrastructure and everyday workloads.
Federated Farmers says it welcomes Labour's commitment to reviewing the Sharemilking Agreements Act, calling on other major parties to do the same.

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