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Dairy Industry Restructuring Act

4 October 2004-05 / 040

Dairy Industry Restructuring Act: Commission to investigate Open Country Cheese dispute with Fonterra

The Commerce Commission today announced it would investigate Open Country Cheese Company Limited's (Open Country) application for a determination relating to charges for reasonable transport costs with Fonterra Co-operative Group (Fonterra). A report detailing the Commission's decision to investigate is available on the website, .

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.

Fonterra's response to Open Country's application is also available on the Commission's website.

In accordance with the Dairy Industry Restructuring Act, the Commission will complete the determination as soon as practicable.


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