The Commerce Commission has given Fonterra a qualified pass in its latest milk price review.
Under amendments to dairy industry legislation passed last year, the Commission has to review Fonterra's farm gate milk price and how it calculates it, twice each season .
The aim is to allow Fonterra to operate efficiently but also to provide competition.
In its latest review, the Commission concluded that Fonterra has generally passed the statutory tests in setting the base milk price.
It's qualified that by saying its been unable to reach a conclusion on some aspects of the review because of a lack of information.
It's also questioned assumptions about energy use rates, because they rely on data collected during peak processing times and don't take account of seasonal variations.
The Commerce Commission report is a draft at this stage. It will release the final version in a month after receiving feedback from Fonterra and any other parties.