New Zealand's Ministry for Primary Industries has published an issues paper for its review of the Dairy Industry Restructuring Act (DIRA), asking whether a regulatory framework written in 2001 around Fonterra's dominant position still suits a much-changed sector.

Fonterra's share of national milk production has fallen from 96 percent to 77.5 percent, and five other processors now collect almost all the remaining raw milk, though competition is uneven across regions and Fonterra keeps the only national collection network. Fonterra has also sold its consumer businesses to Lactalis-Mainland Group, which it supplies with raw milk, moving away from the vertically integrated model behind its creation.

The review covers the farmgate market, where processors compete to buy milk from farmers, and the factory-gate market, where processors and manufacturers buy raw milk from other dairy companies, including Fonterra's supply deals with Goodman Fielder and Lactalis-Mainland. Submissions will shape a draft report due for consultation in early 2027.

Photo: Mattinbgn / Wikimedia Commons (CC BY-SA 3.0)

Source: Farmers Weekly NZ