Historical Industry Regulations

DIRA Public Notices and Statutory Reviews

RAW MILK REGULATIONS 

Forecast and Actual Information

Start of 2017/2018 Season Accordion Item
End of 2017/2018 Season Accordion Item

MILK PRICE METHODOLOGY

Since the financial year ended 31 July 2009, the Farmgate Milk Price has been calculated in accordance with the Farmgate Milk Price Manual. The Farmgate Milk Price determines the amount paid for milk delivered to the farmgate by farmer shareholders.

Read more about Milk Price Methodology.

As required under the DIRA, the Commerce Commission carries out a Statutory Review of both the Milk Price Manual and the Milk Price Calculation annually. For more information about the review process and for copies of the Commerce Commission’s reports can be located below.

COMMERCE COMMISSION

Under section 150H of the Dairy Industry Restructuring Act 2001 (as amended in July 2012) the Commission is required to review Fonterra’s Milk Price Manual for each season and make a report on the extent to which it is consistent with the purpose set out in section 150A of the Act. To assist the Commission’s review Fonterra needs to provide the Milk Price Manual for the current season, together with recommendations of the Milk Price Panel in relation to the Setting of the Base Milk Price, notification of required changes, certification of why it meets the purpose, and supporting reasons before 1 August each year. The Commission is required to make its final report by 15 December each year.

Under Section 150O of the Dairy Industry Restructuring Act 2001 (as amended July 2012) the Commission must review Fonterra's calculation of the base milk price for each season and report on the extent to which it is consistent with the purpose set out in section 150A of the Act. To assist the Commission's review Fonterra must provide (by 1 July in each year) the assumptions adopted and the inputs and processes used by Fonterra in calculating the base milk price for the preceding season. They must also provide certification (including reasons) that the assumptions inputs and processes are consistent with the purpose set out in section 150A of the Act. The Commission is required to make its final report by 15 September each year.