The purpose Subpart 5 of Part 2 is to promote the efficient operation of dairy markets in New Zealand.The DIR Act provides for the regulatory and structural reform of the dairy industry by authorising:

• the amalgamation of New Zealand’s two largest dairy co-operatives – New Zealand Co-operative Dairy Company Limited and Kiwi Co-operative Dairies Limited – into Fonterra Co-operative Group Limited; and
• the resulting ownership by Fonterra of all the shares in the New Zealand Dairy Board.

In relation to the dairy industry, the Commission:

• provides determinations on disputes with Fonterra about the application of Subpart 5 of Part 2 of the DIR Act, or any regulations made under section 115 of the DIR Act; and
• undertakes investigations in relation to Subpart 5 of Part 2 of the DIR Act.

In addition, the dairy industry is subject to the provisions of the Commerce Act and the Fair Trading Act.