Fonterra says its worries about being forced to sell milk to rival companies are confirmed in a report it commissioned from the New Zealand Institute of Economic Research.
It says the report found the requirement is costing the New Zealand economy between $150 - $450 million per year.
The report is part of Fonterra's submission to a select committee considering the sales requirement.
A comulsory sale of up to 600 million litres of milk per year to independent companies was imposed on Fonterra when it was established.
The aim was to forestall market dominance by Fonterra.
But Fonterra says much of the milk it sells now goes to foreign owned companies that compete with it in overseas markets.
The company has always argued it is unfair to compel it to compete against its own product in export markets and that the profits these foreign companies make on the Fonterra milk is denied to New Zealand.
The bill being considered by Parliament would extend the obligation.
