Provided by NZX
  • FSF5.43


  • Open 5.47 High 5.48 Low 5.39 Bid Price 5.43

    Offer Price 5.45 Value 3526761.22 Volume 652164

Current as of 24/04/15 07:40PM NZST

Fonterra shareholders slam dairy bill

Fonterra's Hawera dairy factory. Photo / NZPA
Fonterra's Hawera dairy factory. Photo / NZPA

Fonterra's shareholders' council says the overhaul of the dairy co-operative's enabling legislation will end up regulating farmers' earnings and sapping the life from New Zealand's biggest export.

The Dairy Industry Restructuring Bill, tabled in Parliament this week, replaces the law that allowed Fonterra to be created.

The co-operative will now be monitored by the Commerce Commission over its farm gate price and will be required to disclose its pricing model.

"We haven't seen that sort of thing in New Zealand since the 1970s and no one will increase their investment in an industry at risk of such Government intervention," said shareholders' council chairman Simon Couper.

The bill is part of an omnibus of charges planned for Fonterra.

- BusinessDesk

© Copyright 2015, NZME. Publishing Limited

Assembled by: (static) on production apcf01 at 25 Apr 2015 23:32:17 Processing Time: 350ms