Raw Milk Regulation Review Welcomed

Federated Farmers Dairy Section has welcomed the release of the review into the regulations governing the sale of raw milk by Fonterra to other processors.

The review by the Ministry of Agriculture and Forestry is aimed at ensuring that a reasonable quantity of raw milk is made available to processors who produce niche products including specialty foods such as cheeses, ice cream, chocolate and food ingredients.

Current regulations were set in 2001 when the dairy industry underwent a major restructuring.

“The new proposals will see Fonterra set aside 600 million litres of raw milk which processors can buy at an annual auction, but the base price or reserve will be set at the same price that Fonterra pays suppliers at the farm gate. The milk up for auction will be in lots of varying sizes, said Federated Farmers Dairy Chairman Frank Brenmuhl.

“This new and innovative approach should help to address the concerns farmers have with the present method of selling regulated raw milk as well as give certainty to those New Zealand companies wishing to purchase raw milk from Fonterra.

“Federated Farmers Dairy Section will be analysing the proposal in detail and will make a submission on the review,” Mr Brenmuhl said.