Milk auction for 2010/11 deferred

Agriculture Minister David Carter has announced the deferral of the regulated milk auction due in November.

Mr Carter says some difficulties in preparing the necessary legislative changes have meant there is simply insufficient time to get the Dairy Industry Restructuring Act amended for a November auction.

“I acknowledge that the current regulated milk price is inequitable, and I’m committed to seeing it changed as soon as possible.

“I am determined to ensure that the independent processors can get access to the milk they need, but that Fonterra farmers get a fair return on the product they provide.”

Mr Carter says a decision can still be made that will ensure fair pricing for the 2010/11 season.

“There are alternative options being considered and, without an auction, a decision can be made as late as May 2010, leaving more time to get the changes right and ensure industry stakeholders know where they stand.

“I am not ruling out auctions in future seasons, but the auction planned for the 2010/11 season will no longer go ahead.”