Proposed Law Changes Bring Trading Among Farmers a Step Closer

Fonterra Co-operative Group Limited has welcomed the introduction of a Bill that will help pave the way for the introduction of Trading Among Farmers (TAF).

The Dairy Industry Restructuring Amendment Bill contains proposed legislative changes that are necessary for the launch of TAF.

Fonterra Chairman Sir Henry van der Heyden said some technical changes sought by the Co-op had been made.

"It's nearly there - but there are some further refinements we will discuss with Government and other party members during the select committee process. We want to ensure the law changes allow TAF to operate effectively after its scheduled November 2012 launch.

"But the Board and Shareholders' Council still have to complete their due diligence process and ensure that the pre-conditions on which farmers voted can all be met - including 100 per cent farmer control and ownership." The Amendment Bill also provides for the Commerce Commission to review and report on Fonterra's farm gate milk price setting. "The Co-op will always set the Milk Price. We have said right from the start that we don't think this proposed oversight is necessary - but we can live with it," said Sir Henry. "Fonterra supports transparency around our Farmgate Milk Price and we have made public our Farmgate Milk Price Manual and more detailed analysis every year in our Milk Price Statement." The Government has confirmed that potential changes to the Raw Milk Regulations are still being considered and an announcement on these is expected shortly. "It's been a good process and the Government has given the Co-op and our farmers ample opportunity to make our position clear, particularly on the Raw Milk Regulations."