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New Zealand: Regulator begins review into dairy competition

 |  June 14, 2015

The Commerce Commission in New Zealand has released details of the scope of its inquiry into whether Fonterra Cooperative Group’s 87% of NZ’s milk gives it too much market dominance.

The review is required under the law, when Fonterra was established. It sets out the rules for supply to other milk companies and anticipates those DIRA provisions being phased out once certain market share thresholds have been met.

Commissioner Stephen Gale said “the review will look at whether the regulations are helping or hindering the efficient operation of the NZ dairy industry. To do this we intend to examine how competition has developed since Fonterra was established and what it might look like in the future.”

The Commission is calling for submissions on its discussion document by 10 July and market participants will get another chance for feedback when the regulator releases its draft report in November.

Full content: Irish Farmer’s Journal

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