20 Jul 2011

Feedback sought on raw milk regulations

9:06 am on 20 July 2011

The Government is seeking dairy industry feedback on whether it should make further changes to the raw milk regulations.

The regulations came into force when Fonterra was created almost 10 years ago, and aimed to provide some competition for the dairy co-operative.

The rules require Fonterra to supply a percentage of the milk it collects to smaller independent processors at a fixed margin above the price it pays farmers for the milk.

Some changes were made in an earlier review several years ago, but with both independent processors and Fonterra complaining about aspects of the current rules, the Government has released a consultation document to canvas whether further amendments are needed.

Agriculture Minister David Carter is making it clear the review is not about the price of milk, but specifically about access to raw milk.