Fonterra to appeal latest commission ruling

Fonterra plans to appeal the Commerce Commission's latest ruling in its dispute with cheese companies.

The decision requires the giant dairy cooperative to supply raw milk to another party to process for the Kaimai Cheese and Grate Kiwi cheese companies.

Fonterra says it is not fair that farmers are exposed to extra costs of around $100,000 each a year.

Fonterra spokesman Barry Harris says it is money farmers cannot afford.

He says the Commission's decision opens up eligibility for the milk even further and unless Fonterra defends the principle, it could potentially cost its suppliers even more.

Mr Harris has confirmed an appeal will be launched over the ruling.

- NEWSTALK ZB