MAF gets a Federated Farmers bouquet for DIRA consultation

Federated Farmers is lauding the Ministry of Agriculture and Forestry’s (MAF) options for amendment to the Dairy Industry Restructuring Act (DIRA) that will allow Fonterra Cooperative Group to trade shares among shareholders.

“It was refreshing to see MAF provide a thorough and considered analysis of issues around the trading of shares in Fonterra,” says Lachlan McKenzie, Federated Farmers Dairy chairperson.

“What are issues for farmers in New Zealand’s largest and most important company are issues for New Zealand in general.

“This is the legislation that will underpin Fonterra’s internal share market as well as the new Fonterra Shareholders Fund open to mum and dad investors.

“While we’re making welcome progress on this aspect of the Dairy Industry Restructuring Act, we’re being held back by Raw Milk Regulations. These Raw Milk Regulations seem to reverse WC Fields’ famous dictum.

“Our concern about the Raw Milk Regulations is closely aligned to confidence in milk price. Milk price is one of three key points MAF has identified, along with liquidity as well as open entry and exit.

“The key thing for Federated Farmers is that MAF has genuinely identified the key issues along with the rationale and logic behind it. MAF are taking a welcome hands-off approach with regard to solutions instead of trying to impose one. That’s highly welcome.

“With this aspect of DIRA, MAF is showing a genuine willingness to work with farmers listening to their opinions and aspirations for their cooperative.