Draft report on Fonterra's Milk Price Manual
The Commerce Commission has released its draft report following a review of Fonterra’s base milk price manual for the 2021-22 season.
This provisional authorisation allows TGA to commence collective bargaining while the Commission considers the main application relating to the same conduct. This is the first time the Commission has considered an application for provisional authorisation.
Based on the Commission’s assessment of the evidence available at this time, they consider it appropriate to grant provisional authorisation.
In particular, the Commission considers that the potential benefits of collective negotiation in this case are more likely to outweigh the potential detriments than not.
The benefits of collective negotiation include the potential to reduce transaction costs and reach a more sophisticated agreement.
The Commission says it also considers that allowing this interim arrangement is unlikely to materially affect the market in a permanent way.
