18 Oct 2008

Draft milk decision in favour of two small companies

9:40 pm on 18 October 2008

The Commerce Commission has found against Fonterra in a draft decision on a dispute between the co-operative and two small cheese processors.

The dispute is over the interpretation of a section in the Raw Milk Regulations, which spell out the conditions for Fonterra supplying milk to other processors.

The commission supports the contention of the Kaimai Cheese Company and Grate Kiwi Cheese Company that they are independent processors under the regulations, and Fonterra is obliged to supply them with raw milk to their nominated delivery points.

It will issue a final ruling after considering further written submissions.