New Zealand First wants to increase the amount of regulated Fonterra milk available to qualifying independent processors from 50 million litres a year to 500 million litres. List MP Mark Patterson says it comes under the Dairy Industry Restructuring Act (DIRA), now under review.

“It’s [DIRA] a pro-competition piece of regulation,” he says.

“The industry has consolidated around two players, basically, of any scale.”

The volume is about 3% of Fonterra’s production and would be offered for a limited period before tapering over 10 years. He says a national interest test sits alongside it.

“It would have to be a company that was genuinely going to add value and increase revenue for New Zealand, not just a company that was coming in to set up a milk powder plant.”

He says the policy is consistent with New Zealand First’s stance on the supermarket duopoly and the banks.

“We’re determined to fortify and future-proof the New Zealand dairy industry.”

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