Report on the state of competition in the New Zealand dairy industry

Under section 148A of the Dairy Industry Restructuring Act 2001, the Minister of Primary Industries (the Minister) must request a report on the state of competition in the New Zealand dairy industry, if a report has not already been requested under section 148 before 1 June 2015.

On 2 June 2015, the Minister requested that report from the Commission, and provided a Terms of Reference for that report. Read the Terms of Reference below.

Our final report, published on 1 March 2016, provides the Minister with an independent view on the state of competition in the New Zealand dairy industry.

Having considered submissions on the draft report released in November 2015, the Commission’s view remains that there is not sufficient competition at the farm gate and factory gate to consider full deregulation at this time. The final report recommends that a pathway to deregulation would be smoothed by facilitating the development of a factory gate market for non-DIRA milk.Options the Minister should consider include:

  • reducing DIRA milk entitlements
  • investigating if and when the DIRA milk price covers Fonterra’s opportunity costs
  • tightening the terms and conditions for DIRA milk supply.

The Commission had 9 months to conduct the review. Within 90 days of receiving the Commission’s report, the Minister must respond to the report, including by giving public notice of his intention to promote changes to the current market share thresholds, or measures that provide a transition pathway to deregulation, or both.

Documents

Final report – review of the state of competition in the New Zealand dairy industry

01/03/2016 (2 documents)

Final report – Review of the state of competition in the New Zealand dairy industry – 1 March 2016 PDF (2 MB)
Published on 01 March 2016
Review of the state of competition in the New Zealand dairy industry – Stakeholder briefing – 1 March 2016 PDF (1.2 MB)
Published on 01 March 2016

Draft report – review of the state of competition in the New Zealand dairy industry

06/11/2015 (2 documents)

Draft report – Review of the state of competition in the New Zealand dairy industry – 6 November 2015 PDF (1.8 MB)
Published on 06 November 2015
Analyst briefing slides – Review of the state of competition in the NZ dairy industry – 6 November 2015 PDF (897 KB)
Published on 06 November 2015

Submissions on the consultation paper – substantive issues

18/08/2015 (14 documents)

Danone Nutiricia – Submission on dairy competition review substantive issues – August 2015 PDF (382 KB)
Published on 18 August 2015
Fonterra – Submission on dairy competition review substantive issues – 17 August 2015 PDF (434 KB)
Published on 18 August 2015
NERA on behalf of Fonterra – Submission on dairy competition review substantive issues – 17 August 2015 PDF (866 KB)
Published on 18 August 2015
Foodstuffs – Submission on dairy competition review substantive issues – 17 August 2015 PDF (114 KB)
Published on 18 August 2015
Grinning Gecko – Submission on dairy competition review substantive issues – 14 August 2015 PDF (125 KB)
Published on 18 August 2015
Karikaas – Submission on dairy competition review substantive issues – 17 August 2015 PDF (142 KB)
Published on 18 August 2015
Mercer Cheese – Submission on dairy competition review substantive issues – 12 August 2015 PDF (28 KB)
Published on 18 August 2015
Miraka – Submission on dairy competition review substantive issues – August 2015 PDF (192 KB)
Published on 18 August 2015
Attachment to Miraka submission – Review of Fonterra's pricing of regulated milk – Michael Pickford – 22 February 2012 PDF (813 KB)
Published on 18 August 2015
Attachment to Miraka submission – Review of the milk pricing methodology of Fonterra – Patrick Rey – February 2012 PDF (199 KB)
Published on 18 August 2015
Over the Moon Dairy – Submission on dairy competition review substantive issues – 13 July 2015 PDF (119 KB)
Published on 18 August 2015
Synlait – Submission on dairy competition review substantive issues – 12 August 2015 PDF (243 KB)
Published on 18 August 2015
Tatua – Submission on dairy competition review substantive issues – August 2015 PDF (594 KB)
Published on 18 August 2015
Waimata Cheese Co Ltd – Submission on dairy competition review substantive issues – July 2015 PDF (37 KB)
Published on 18 August 2015

Consultation paper – substantive issues

20/07/2015 (1 documents)

Consultation on substantive issues – Review of competition in the dairy industry – 20 July 2015 PDF (152 KB)
Published on 20 July 2015

Cross-submissions on the consultation paper – process and approach

27/07/2015 (2 documents)

Fonterra – cross-submission on the consultation paper, process and approach – 24 July 2015 PDF (228 KB)
Published on 27 July 2015
Miraka – cross-submission on the consultation paper, process and approach – 24 July 2015 PDF (115 KB)
Published on 27 July 2015

Submissions on the consultation paper – process and approach

13/07/2015 (14 documents)

Federated Farmers – Submission on dairy competition review – 10 July 2015 PDF (327 KB)
Published on 13 July 2015
Federated Farmers – Submission to Ministry of Agriculture and Fisheries 2011 – 10 July 2015 PDF (327 KB)
Published on 13 July 2015
Fonterra – Submission on dairy competition review – 10 July 2015 PDF (65 KB)
Published on 13 July 2015
Goodman Fielder – Submission on dairy competition review – 10 July 2015 PDF (1.6 MB)
Published on 13 July 2015
Karikaas Natural Dairy Products Ltd – Submission on the dairy competition review – 12 June 2015 PDF (98 KB)
Published on 13 July 2015
Miraka – Submission on diary competition review – 10 July 2015 PDF (113 KB)
Published on 13 July 2015
Miraka – Submission on the milk price calculation review process and issues paper – April 2015 PDF (192 KB)
Published on 13 July 2015
NZ Specialist Cheesemakers Association – Submission on the dairy competition review – 12 June 2015 PDF (102 KB)
Published on 13 July 2015
Open Country Dairy – Submission on dairy competition review – 10 July 2015 PDF (570 KB)
Published on 13 July 2015
Castalia – Report to Open Country on State of Competition Review – July 2015 PDF (391 KB)
Published on 13 July 2015
Synlait – Submission on the dairy competition review – 10 July 2015 PDF (329 KB)
Published on 13 July 2015
Tatua – Submission on the dairy competition review – 10 July 2015 PDF (215 KB)
Published on 13 July 2015
Talleys – Submission on the dairy competition review – 10 July 2015 PDF (152 KB)
Published on 13 July 2015
Westland Milk Products – Submission on dairy competition review – 10 July 2015 PDF (452 KB)
Published on 13 July 2015