Thursday, 06 June 2019 12:58

Dairy industry changes a missed opportunity – Fonterra

Written by 
John Monaghan. John Monaghan.

Fonterra says the proposed changes to DIRA announced today will bring some improvements to the sector, but it also represents a missed opportunity to better support New Zealand.

Fonterra chairman, John Monaghan says that while the Government has recommended tweaks to the rules under which Fonterra has to give its farmers’ milk, effectively at cost price to foreign-backed competitors, the playing field is still tipped against New Zealand dairy farmers.

“Our farmer-owned cooperative wants an industry that promotes investment across regional New Zealand and where profits are kept in New Zealand.  We stand for an industry where New Zealand farmers are paid well for their milk and the unique attributes of our environment are protected and enhanced.

“Given the significant increase in competition within the New Zealand dairy industry, we’re disappointed the Government did not recommend removing the requirement for us to supply our farmers’ milk to large, export-focused businesses altogether.”

Fonterra welcomed the Government’s decision to give the co-op to refuse milk from a farm unlikely to comply with its terms of supply, or where the farm is a new conversion. 

Monaghan says these changes will support the co-op’s ability to meet customers’ demands and continue leading the industry toward a sustainable future for farmers and the rural communities.

Fonterra supports greater pricing transparency across the industry and notes with interest the Government’s decision that the Minister of Agriculture will be able to nominate one person to sit on Fonterra’s Milk Price Panel.

Fonterra encourages the Government to extend this transparency and require all processors to publish the average price they pay to farmers, the key parameters of their milk price and examples showing the payout that would be received for different parameters.

“All efforts to bring greater pricing transparency into the dairy industry should be encouraged.  There’s no downside in farmers having clear, consistent information from which to compare processors,” says Monaghan.

“We look forward to constructively participating in the upcoming legislative process and will continue to push for an outcome that is in the interests of all dairy farmers and New Zealand.”

More like this

Fonterra chairman feels the heat

Frustrated Fonterra farmers called for chairman John Monaghan to take responsibility for the co-op’s financial debacle and step down.

No threat to farming from forestry

OPINION: There’s some agitation out there at the moment about farming being under threat from forestry. Much of what’s circulating is based on misinformation so it’s time to lay out the facts.

» The RNG Weather Report

Featured

Making it OK to ask for help

Meat processing company Alliance has started an employee support programme aimed at getting colleagues to look after each other and keep an eye out for possible mental health issues.

 

Johnstone bows out on top

When Lachie Johnstone first started on the board of Farmlands 19 years ago the rural services cooperative ran 32 stores with a turnover of $280 million.

‘Useful’ recruitment tool

Employers say a Government-backed free website, Work the Seasons, is becoming a useful part of their seasonal recruitment toolbox.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Angry as usual

The usual culprits are angry at hearing last week that the Government and the agri sector will work together to…

Vladimir the dairy farmer

Russian President Vladimir Putin is a master tactician in taking advantage of international conflicts.

» Connect with Dairy News