2008 Kaimai Cheese Co Determination

Subscribe to 2008 Kaimai Cheese Co Determination

On 27 August 2008 the Commission also decided (Decision No. 647) to determine an application for dispute from Grate Kiwi Cheese Company Limited. The underlying issues in dispute in the applications from both Kaimai and Grate Kiwi are related and the Commission has decided it is appropriate to consider the applications together.

Documents

Cross-submissions on consultation document

(2 documents)

Kaimai Cheese Company Ltd - Cross Submission regarding Dispute Determination involving Fonterra PDF (48 KB)
The Commerce Commission has given submitters on the Consultation Document dated 19 March 2009 the opportunity to make cross submissions. This is the cross submissions from Kaimai Cheese Company Limited (from hereon referred to as "Kaimai").
Fonterra - Cross Submission regarding Dispute Determination involving Kaimai Cheese and Grate Kiwi Cheese PDF (220 KB)
We refer to the submissions made in relation to the Commission's consultation document of 19 March 2009 in relation to the applications by Kaimai Cheese Company Limited ("Kaimai") and the Grate Kiwi Cheese Company ("Grate.

Submissions on consultation document

(11 documents)

Goodman Fielder - Submission regarding Open Country Cheese Transport Determination, 28 April 2009 PDF (1.4 MB)
Kaimai Cheese Company Limited - Application for Dispute Determination, 16 April 2009 PDF (79 KB)
This submission adds to earlier submissions to the Commission in relation to the application by Kaimai pursuant to s.120 of the Dairy Industry Restructuring Act 2001 (DIRA) seeking determination for a dispute between Kaimai Cheese and Fonterra. The essence of this dispute as to the definition of the 'independent processor' as used in the Dairy Industry Restructuring Act 2001.
The Grate Kiwi Cheese Company Limited - Response regarding Commerce Commission Consultation Document - Kaimai Cheese Company Limited and (separately) The Grate Kiwi Cheese Company Limited and Fonterra Co-operative Group Limited PDF (114 KB)
A response on behalf of The Grate Kiwi Cheese Company Limited (Grate Kiwi).

(Any reference to milk in this submission means milk, milk solids, or dairy products but does not mean raw milk.)
Fonterra Co-Operative Group and National Foods - Notice Seeking Clearance - 3 November 2004 PDF (1.5 MB)
Westland - Submission regarding Interpretation of Raw Milk Regulations, 16 April 2009 PDF (134 KB)
Federated Farmers of New Zealand - Submission on Kaimai Cheese Company Ltd and (seperately) the Grate Kiwi Cheese Company Ltd and Fonterra Co-operative Group Ltd PDF (129 KB)
Federated Farmers submits that making independent milk processors (by any definition) pay a fair price for regulated raw milk would encourage them to source their milk in a competitive manner. What these companies then do with the milk is immaterial because they will have paid a fair price for it. We therefore have no problem with taking a liberal definition of 'independent processor'
NZ Specialist Cheesemakers - Submission in response to the Consultation Document in the matter of determinations of disputes under the Dairy Industry Restructuring Act 2001 PDF (31 KB)
What this submission does represent is some of the views of some of our members, and it raises a number of concerns of issue to our members. All members who do have specific concerns have been encouraged to make their own submission.
Karikaas - Submission in response to the Consultation Document in the matter of determinations of disputes under the Dairy Industry Restructuring Act 2001 PDF (62 KB)
Karikaas is a small cheese and yoghurt manufacturer in North Canterbury. I do not buy regulated milk. Instead I collect milk under the 20% rule from a local Oxford farm, which also supplies Fonterra. I have been doing this since 2004. This is a seasonal farm, so during the winter months I have milk delivered to me by Fonterra, and I pay a predetermined contract price for it.
Serra Natural Foods - Further Submission regarding Kaimai Cheese, Grate Kiwi Cheese and Fonterra PDF (17 KB)
It is my submission that it is not prudent to attempt to conclusively codify this aspect of the regulations. It would not be possible to do so in an unambiguous way and would lead to much litigation and/or defeat the spirit and intention of the regulations.
Ministry of Agriculture and Forestry - Submission on Commerce Commission consultation document dated 19 March 2009 PDF (1.5 MB)
The Ministry of Agriculture and Forestry (MAF) wishes to make a submission o the Commerce Commission's (the Commission) consultation document dated 19 March 2009, regarding the definition of an independent processor.
New Zealand Dairies Limited - Consultation Document - Kaimai Cheese Company and the Grate Kiwi Cheese Company and Fonterra PDF (1.5 MB)

Further Consultation

(1 documents)

Commerce Commission - Further consultation document regarding determinations of disputes involving Kaimai; and (seperately) Grate Kiwi Cheese and Fonterra, 19 March 2009 PDF (106 KB)
This document sets out the Commission's further preliminary views about the framework for resolving the dispute, followed by four options as to how the legislation could be interpreted, what scenarios each interpretation would allow, and the implications of each interpretation.

Submissions on Draft Determination - Interested Parties

(7 documents)

Synlait Ltd - Submission on Kaimai Cheese Company Ltd and The Grate Kiwi Cheese Company Ltd Dairy Determination, 31 October 2008 PDF (140 KB)
Synlait Ltd is an independent processor of raw milk. It commenced production from its own milk processing facility on 2 August 2008. It processes milk from its own farming operations and for the first time in the 2008/2009 season is taking supply of 50 million litres of raw milk from Fonterra. That milk is supplied under the default milk regime provided in the Dairy Industry Restructuring Act 2001 (referred to as DIRA) and the Dairy Industry Restructuring (Raw Milk) Regulations 2001 (referred to as Raw Milk Regulations).
Cadbury Confectionary Ltd - Submission on Commerce Commission Draft Determination on Kaimai Cheese Company; The Grate Kiwi Cheese Company and Fonterra, 30 October 2008.pdf PDF (1 MB)
Cadbury Confectionary Limited (Cadbury) supports the view of the Commission, that Fonterra is required to supply raw milk to the Kaimai and Grate Kiwi Companies.
Serra Natural Foods - Submission on Dairy Draft Determination, 29 October 2008 PDF (438 KB)
List of points for objecting to the referenced draft determination.

New Zealand Dairies Ltd - Submission on Draft Determination - Kaimai; and Grate Kiwi Cheese and Fonterra, 31 October 2008 PDF (1.1 MB)
Submission that the Commission's broad interpretation of the definition of "independent processor" as defined in the Dairy Industry Restructuring Act 2001 ("Act"); and section 4(1) of the Dairy Industry (Raw Milk) Regulations 2001 ("Regulations"), has the potential:

"¢ To create commercial agreements between small and large independent processors which simply result in a "value transfer" from Fonterra to other parties without creating competition; and
"¢ To create commercial arrangements within the dairy industry between independent processors and Fonterra, that are in direct contradiction with the purpose of the Act and the Regulations.
RK and A Hines - Submission - Kaimai Cheese Company and Grate Kiwi Cheese Company, 22 October 2008 PDF (49 KB)
A submission lodged on behalf of RK and A Hines Partnership against the referred companies receiving milk from Fonterra at cost price.
I Hancock - Submission Against the Proposed Milk Regulations, 25 October 2008 PDF (26 KB)
Submission against the proposed Raw Milk Regulations.
D Strawbridge - Submission regarding Open Country Cheese and Fonterra Dairy Determination, 28 October 2008 PDF (79 KB)
Concerns over the regulation set down when Fonterra was established.

Submissions on Draft Determination - Parties to the dispute

(2 documents)

Kaimai Cheese Company - Submission on Commission Draft Determination on Kaimai Application for a Dpispute Determination Between Kaimai and Fonterra under s.120 of the Dairy Industry Restructuring Act 2001, 30 October 2008 PDF (174 KB)
Kaimai strongly endorses the conclusion of the Commission's Draft Determination. The Final Determination should confirm that Kaimai is an independent processor as defined in the Dairy Industry Restructuring Act (DIRA) or the Dairy Industry Restructuring Act Regulations (Raw Milk Regulations).
Fonterra Co-operative Group - Submission on Draft Determination concerning applications for determination from Kaimai and Grate Kiwi Cheese, 31 October 2008 PDF (899 KB)
Kaimai and Grate have applied to the Commission to determine separate disputes with Fonterra. Both disputes relate to eligibility to access raw milk under the DIRA and the Raw Milk Regulations.

Supplementary Submissions

(2 documents)

Kaimai Cheese - Supplementary submission regarding Application for Determination - Dairy Industry Restructuring Act 2001, 05 Spetember 2008 PDF (283 KB)
Fonterra - Submission on Dairy Industry Restructuring Act 2001: Applications for Determinations from Kaimai and Grate Kiwi Cheese PDF (344 KB)
Kaimai Cheese Company Limited ("Kaimai") and The Grate Kiwi Cheese Company ("Grate") have applied to the Commerce Commission to determine separate disputes with Fonterra. Both disputes relate to eligibility to access raw milk ("raw milk") under the Dairy Industry Restructuring Act 2001 ("Act") and the Dairy Industry Restructuring (Raw Milk) Regulations 2001 ("Raw Milk Regulations").

Decision to determine

(1 documents)

Commerce Commission - Decision 646: Decision whether to Determine the application for Determination from Kaimai Cheese Company Ltd PDF (64 KB)
Kaimai Cheese Company Limited has applied for a determination, under section 120 of the DIR Act, relating to a dispute with Fonterra Co-operative Group Limited about the interpretation and application of regulation 4(1) of Dairy Industry Restructuring (Raw Milk) Regulations 2001.

Application for Determination

(2 documents)

Kaimai Cheese Company Limited - Application for dispute determination, 25 June 2008 PDF (232 KB)
Fonterra has advised Kaimai that it will not supply raw milk to Kaimai as it does
not regard Kaimai as an independent processor under the Dairy Industry
Restructuring Act 2001 and the Dairy Industry Restructuring (Raw Milk)
Regulations 2001.
Fonterra's Response - Dairy Industry Restructuring Act 2001: Application for Determination from Kaimai Cheese Ltd PDF (24 KB)
Contrary to Kaimai's description of the dispute, Fonterra has not "advised Kaimai that it will not supply raw milk to Kaimai". Rather, the issue has been the extent to which Kaimai can take advantage of the provision of raw milk at regulated prices pursuant to the Dairy Industry Restructuring (Raw Milk) Regulations 2001 ("Regulations").