The Commerce Commission has given Fonterra a qualified pass in its first statutory review of the dairy co-operative's milk pricing system.
Under amendments to dairy industry legislation passed this year, the Commerce Commission has to review Fonterra's farm gate milk price and how it sets it, twice each season.
The aim is to allow Fonterra to operate efficiently but also provide for competition in buying milk from farmers.
In the review, the commission concludes that Fonterra's milk pricing system generally complies.
But it has identified three areas it wants to investigate further in the second review next year.
They include the calculation of milk collection costs.