4 Aug 2008

Commerce Commission to rule on milk terms

5:01 pm on 4 August 2008

A dispute between Fonterra and the Kaimai Cheese Company over the supply of raw milk will be decided by the Commerce Commission.

The two companies cannot agree on terms under which Kaimai is able to obtain raw milk from Fonterra.

Kaimai Cheese Company commenced operations in January. Based in Waharoa, it intends to supply a range of soft, hard and semi-hard cheeses.

Under the Raw Milk Regulations, Fonterra is obliged to provide milk to smaller companies for processing. But there have been a number of disputes over the interpretation of the regulations, mainly to do with the price Fonterra charges.