NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • All Blacks
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Agribusiness

Independent dairy producers more competitive

Jamie Gray
By Jamie Gray
Business Reporter·NZ Herald·
16 Aug, 2015 10:05 PM2 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Independent processors collected 22 percent of all milk solids in the South Island and 9 percent in the North Island, triggering the expiry of pro-competition provisions under DIRA. Photo / NZME
Independent processors collected 22 percent of all milk solids in the South Island and 9 percent in the North Island, triggering the expiry of pro-competition provisions under DIRA. Photo / NZME

Independent processors collected 22 percent of all milk solids in the South Island and 9 percent in the North Island, triggering the expiry of pro-competition provisions under DIRA. Photo / NZME

Fonterra's market share in the South Island has slipped beneath the 80 per cent threshold specified in its enabling legislation, the Dairy Industry Restructuring Act (DIRA), the Minister for Primary Industries, Nathan Guy said.

Guy said in a statement that in the 2014/5 season, independent dairy processors collected 22 percent of all milksolids in the South Island and nine per cent in the North.

Under DIRA, the minister is required to certify when this threshold is reached. It triggers expiry of the pro-competition DIRA provisions in the South Island by no later than May 31, 2018, unless there is legislative change before then.

Read also:
• Fonterra cuts dairy auction volume
• English upbeat despite dairy woes

"While Fonterra continues to collect more milk every season, it is encouraging to see new processors enter the market and create competitive pressure," Guy said in a statement.
Monitoring of the amount collected by independent processors is required under DIRA, which allowed Fonterra to become established in 2001.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

DIRA also contains provisions to promote the efficient operation of dairy markets in New Zealand through contestability in the farm gate and factory gate markets. These provisions are intended to expire when there is sufficient competition.

"While the percentage of milksolids collected by independent processors is one indicator of competition, it is not definitive," Guy said.

Against that background, the Commerce Commission would provide a report on the state of competition in the New Zealand dairy industry, to inform the Government.

Advertisement
Advertise with NZME.

"The Government will need to consider next year whether to promote changes to legislation to extend the duration of the pro-competition provisions, or provide a transition pathway to deregulation, or a combination of both," he said.

The final report is due on February 19, 2016, after which the Government would will give notice of its intent, Guy said.

Discover more

Business

Fran O'Sullivan: China changes game on dairy imports

14 Aug 08:13 AM
New Zealand

Dairy dip will hurt rural areas

13 Aug 06:00 AM
Business

S&P places Fonterra on credit watch

13 Aug 04:45 AM
Agribusiness

Fonterra cuts dairy auction volume

13 Aug 05:00 PM
Save

    Share this article

Latest from Agribusiness

Markets with Madison

Rockets to ranches: How Halter's cattle collars turned a Kiwi start-up into a US$1b unicorn

23 Jun 05:00 PM
Premium
Agribusiness

'Dark horse' emerges: Meiji named as potential bidder for Fonterra's Mainland

17 Jun 05:16 AM
Premium
Agribusiness

Comvita forecasts another annual loss

15 Jun 11:39 PM

Kaibosh gets a clean-energy boost in the fight against food waste

sponsored
Advertisement
Advertise with NZME.
Recommended for you
Lawson sixth, beats Verstappen and Hadjar in Austrian qualifying
Formula 1

Lawson sixth, beats Verstappen and Hadjar in Austrian qualifying

28 Jun 03:21 PM
Family beg for news of missing teen who vanished from Akl mall
New Zealand

Family beg for news of missing teen who vanished from Akl mall

28 Jun 10:52 AM
 Lions v Force live updates
Rugby

Lions v Force live updates

28 Jun 09:30 AM
'Explosive-laden vehicle': 16 soldiers killed, dozens injured in Pakistan suicide attack
World

'Explosive-laden vehicle': 16 soldiers killed, dozens injured in Pakistan suicide attack

28 Jun 09:27 AM
Are you the lucky winner? Two bag $500,000 in Lotto draw
New Zealand

Are you the lucky winner? Two bag $500,000 in Lotto draw

28 Jun 09:00 AM

Latest from Agribusiness

Rockets to ranches: How Halter's cattle collars turned a Kiwi start-up into a US$1b unicorn

Rockets to ranches: How Halter's cattle collars turned a Kiwi start-up into a US$1b unicorn

23 Jun 05:00 PM

Halter's solar-powered collars are on hundreds of cattle in the US.

Premium
'Dark horse' emerges: Meiji named as potential bidder for Fonterra's Mainland

'Dark horse' emerges: Meiji named as potential bidder for Fonterra's Mainland

17 Jun 05:16 AM
Premium
Comvita forecasts another annual loss

Comvita forecasts another annual loss

15 Jun 11:39 PM
Premium
'Pretty positive': Fieldays vendors thrive as farmers invest

'Pretty positive': Fieldays vendors thrive as farmers invest

13 Jun 05:15 AM
Engage and explore one of the most remote places on Earth in comfort and style
sponsored

Engage and explore one of the most remote places on Earth in comfort and style

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP
search by queryly Advanced Search