Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Open Country Cheese Co In dispute with Fonterra

Dairy Industry Restructuring Act: Open Country Cheese Company in dispute with Fonterra

The Commerce Commission has received an application from the Open Country Cheese Company Limited (Open Country) for a determination under the Dairy Industry Restructuring Act 2001 (DIR Act) relating to charges for reasonable transport costs with Fonterra Co-operative Group (Fonterra).

Open Country’s application says the two parties have been unable to agree on the value of the transport component of the default milk price for raw milk that Open Country is to purchase from Fonterra under the Dairy Industry Restructuring (Raw Milk) Regulations 2001.

Waharoa-based Open Country is scheduled to commence operations 1 October 2004. Its plan is to manufacture and sell international quality cheese made from New Zealand sourced milk.

Under the DIR Act, the Commission considers applications for determinations from parties in dispute with Fonterra. The Commission has notified Fonterra that the application has been received, and requested Fonterra to comment on the application. Fonterra must provide those comments no later than 10 working days after receiving notification from the Commission.

After receiving Fonterra’s comments, the Commission then decides whether or not to conduct an investigation and determine the matter. There is no statutory time frame for completing the determination other than it must be completed as soon as practicable.

A copy of the application is available on the Commission's website,

Background Section 120 of the Dairy Industry Restructuring Act 2001 states: Determination to resolve conflict A person may apply to the Commission for a determination if the person has a dispute with the new co-op (Fonterra) about the application of this subpart (Subpart 5) or regulations made under section 115. Despite subsection (1), the Commission may reject an application, and return it to the applicant (and do no more in relation to the application), if, in the Commission’s opinion, - the dispute is not genuine or is vexatious or frivolous; or the applicant does not have a direct financial interest in the matter to which the application relates; or the applicant has not made a reasonable attempt to settle the matter with new co-op; or the Commission has made a determination, or is currently considering an application, on the same matter. The Commission may consider related applications together. An application under subsection (1) must be made within 3 years after the matter giving rise to the dispute arose. Subpart 5 of the DIR Act relates to the regulation of dairy markets and obligations of Fonterra. The purpose of Subpart 5 is to promote the efficient operation of dairy markets in New Zealand.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>