Fonterra must supply 'cheap' milk, regulator says

Fonterra Cooperative Group must supply milk at cost to Kaimai Cheese Co. and Grate Kiwi Cheese Co. after the regulator rule they qualified as independent processors entitled to a share of so-called “statutory” milk.

The entitlement, for up to 50 million litres of milk apiece out of 600 million litres that Fonterra must make available as required, stems from the legislation that allowed the cooperative to be created from the merger of New Zealand’s biggest dairy companies without breaching antitrust rules.  

“Fonterra has breached the regulations by not supplying Kaimai and Grate Kiwi with milk,” the Commerce Commission said in a statement. It ordered Fonterra to pay compensation for losses to Kaimai and Grate Kiwi may have incurred when they didn’t receive the milk. 

Businesswire.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Skellerup achieves another record result
August 21st Morning Report
Me Today signals capital raise and provides trading update
Seeka Announces Interim Result and Updates Guidance
FBU - Fletcher Building announces FY25 Results
August 20th Morning Report
RUA - New Zealand grown products support Rua's global strategy
Devon Funds Morning Note - 19 August 2025
Seeka Announces 15 cent Dividend
MCY - Major renewable build advanced despite 10% earnings dip