27 Aug 2012

Fonterra milk pricing OK in dry run review

12:45 pm on 27 August 2012

The Commerce Commission has done a dry run of the review process for monitoring how Fonterra sets its farm gate milk price.

And it concludes that Fonterra's milk pricing is consistent with the aim and principles of the milk pricing system set out in the amended Dairy Industry Restructuring Act, passed earlier this year.

The commission will have the job of monitoring and reporting on whether Fonterra's farm gate milk price complies with the new legislation.

The Minister for Primary Industries asked it to do the dry run, to show how the milk price monitoring arrangement would work in practice.

Commerce Commission deputy chair Sue Begg said the time available for doing the review was limited because the minister wanted it finished before Fonterra introduces Trading Among Farmers.