28 Aug 2012

Federated Farmers hails milk price review result

12:56 pm on 28 August 2012

Federated Farmers says the outcome of a review by the Commerce Commission of Fonterra's farm gate milk price should quell any doubts people had about the way it's calculated.

After looking at last season's milk price, the Commission has concluded that Fonterra's pricing is consistent with what the legislation requires and allows competition in the milk market.

Federated Farmers says the commission's view on the way Fonterra sets its price has been a nagging doubt for shareholders,

Dairy chair Willy Leferink said getting its acknowledgement that the milk pricing is fair and accurate is a relief.

Mr Leferink said the review should also lay to rest any doubts held by the public or future non-farmer investors in the Fonterra shareholder fund, as Fonterra moves towards Trading Among Farmers.

He said farmers are now waiting on the outcome of an inquiry by the Parliamentary Commerce Select Committee into the price of milk, especially since Statistics New Zealand has reported a fall in the retail price for dairy goods.