Primary Industries Minister Nathan Guy has released a discussion document seeking feedback on options to amend the Dairy Industry Restructuring Act 2001 and its regulations.
The document responds to the Commerce Commission's report on the state of competition in the New Zealand dairy industry, which was released on 1 March 2016.
The Minister is required to respond to the report within 90 days of receiving it.
"After considering this report I am releasing a discussion document on options to amend certain provisions of the Dairy Industry Restructuring Act and transition towards deregulation," he says.
The discussion document seeks feedback from the dairy sector on options which include:
- Amending the Dairy Industry Restructuring Act (Raw Milk) Regulations 2012 so that Fonterra no longer needs to sell milk at a regulated price to large, export-focused processors, and the volumes of regulated milk available to other processors are gradually reduced.
- Amending the open entry provisions so that Fonterra no longer has to collect milk from new dairy conversions.
- Amending the sunset provisions so that the next competition review occurs in five years' time or if independent processors achieve a 25% market share in the North or South Island.
Submissions close on 29 June 2016 and several public meetings will be held during June.