Fonterra farmers vindicated by Commerce Commission findings

Fonterra Shareholders’ Council Chair Simon Couper said the Commerce Commission’s decision to reject an inquiry into the price of milk is a vindication for all Fonterra farmers.

“After years of contentious debate the decision today is a justification of what we have said all along - that the farm gate milk price is fair and reflects the capital and production costs incurred in the dairy industry,” said Couper.

In March, the Commission began a review of competition in the milk market after complaints from consumers and rivals of Fonterra.

“Competition is in the best interests of farmers as it helps to ensure we receive the best price for our product at the farm gate and in turn guarantees the need for our co-operative to evolve in order to maintain its edge.

“I find it ludicrous that we are labelled as being anti-competitive, in fact there are at least 25 other processors in New Zealand whose production has risen by 400% in the past decade.

“This campaign against Fonterra farmers has been cooked up by our competitors. Their agenda has never been about protecting the domestic market rather it has been about ensuring they receive an easy ride at the expense of the New Zealand public.

“Our hope is that the focus can now shift to the good the industry is doing for our country.”