Lakes News:

Fonterra welcomes the passage of the DIRA Bill


Fonterra welcomes the passage of the Dairy Industry Restructuring Act Amendment Bill, which provides the changes to legislation that are needed to facilitate Trading Among Farmers.

“The enactment of these changes to DIRA is another milestone as we move towards Trading Among Farmers,” says Fonterra Chairman Sir Henry van der Heyden. 

“While the decision to implement TAF was always one for our farmer shareholders, we appreciate the Government’s ongoing support for Fonterra and the role it has played in enabling the evolution of our capital structure.

“The changes also introduce a new regime of Commerce Commission oversight of Fonterra’s setting of the Farmgate Milk Price which will improve understanding of the transparent and robust method Fonterra uses to set its Farmgate Milk Price. 

“This is an important time for the Co-operative and we look forward to continuing to work constructively with the Government to strengthen our dynamic dairy industry in a way that benefits all New Zealanders.”

Sir Henry says the Board is still working towards a November launch for TAF but this will be dependent on market conditions. 

The pre-conditions in the Constitution need to be finally satisfied, including the support of theShareholders’ Council.

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