Tuesday, 22 November 2022 10:55

Fonterra welcomes DIRA report

Written by  Sudesh Kissun
Fonterra chairman Peter McBride says the co-op is satisfied that legislation is moving in the right direction. Fonterra chairman Peter McBride says the co-op is satisfied that legislation is moving in the right direction.

Fonterra is welcoming key changes made to a bill before Parliament that will finalise the co-operative's new capital structure.

The primary production select committee released its report on the Dairy Industry Restructuring Act (DIRA) Amendment Bill, giving the green light to the co-op's new flexible shareholding structure.

The bill will now go through a second and third reading in Parliament before it can be passed into law. Fonterra remains hopeful this can be done before the end of the year.

In an email to farmer shareholders, Fonterra chairman Peter McBride says the co-op is satisfied that it is moving in the right direction.

"We are pleased to see the adoption of some of the key changes we advocated for in our submission," he told farmers.

The most significant of these related to the potential for third parties to take enforcement action against the co-operative for any perceived breaches of the Milk Price oversight regime.

McBride says the select committeehas recommended this provision be removed.

"We are also encouraged to see that some of our requested changes to the information disclosure requirements have been reflected in today's report."

But he points out that some other changes proposed by Fonterra were either only accepted in part, or rejected by the committee.

McBride notes that the committee has recommended to retain new individual liability provisions related to the Milk Price oversight regime. However, they limited these in line with the defences Fonterra put forward in its submission.

"We are also disappointed that the committee did not support our request to remove the additional powers of direction for the Commerce Commission.

"We strongly object to any suggestion that our co-op or the individuals involved in the process somehow manipulate the outcome."

McBride says the co-op will continue to advocate on these points as the bill progresses. He thanked Fonterra farmers who made individual submissions alongside the co-op and the Fonterra Co-operative Council during the select committee process.

He says Fonterra remains committed to implementing the flexible shareholding structure as soon as possible.

The DIRA changes were strongly opposed by other milk processors.

The primary production select committee is chaired by Labour MP Jo Luxton. Members are Mark Cameron, Nicola Grigg, Steph Lewis, Anna Lorck, Todd Muller, Angela Roberts and Tim van de Molen.

More like this

Misguided campaign

OPINION: Last week, Greenpeace lit up Fonterra's Auckland headquarters with 'messages from the common people' - that the sector is polluting the environment.

Aussie farmers get A$8.60/kgMS as opening milk price

Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS -  NZ74c less than New Zealand suppliers, based on the current exchange rate.

Featured

Brendan Attrill scoops national award for sustainable farming

Brendan Attrill of Caiseal Trust in Taranaki has been announced as the 2025 National Ambassador for Sustainable Farming and Growing and recipient of the Gordon Stephenson Trophy at the National Sustainability Showcase at in Wellington this evening.

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Don't hold back!

OPINION: ACT MP Mark Cameron isn’t everyone’s cup of tea, but he certainly calls it how he sees it, holding…

Sorry, not sorry

OPINION: Did former PM Jacinda Ardern get fawning reviews for her book?

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter