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Dairy Industry Restructuring Amendment Bill (No 3)

Introduced on Aug 22, the bill amends the Dairy Industry Restructuring Act 2001 to remove some regulatory requirements the gov says is merited considering Fonterra’s market share coming down from 96% to 80%. Fonterra will now have some ability to decline milk supply, but will still be obliged to supply milk to its rivals at a minimum price. First reading completed on Aug 27 with National and ACT opposed. National said more deregulation was needed, both the Greens and NZ First indicated they would be looking for changes around Fonterra’s ability to refuse supply. Sent to the Primary Production Committee for consideration. Reported back on March 20 with a small number of changes MPs said it was time to remove the open entry requirements which require Fonterra to buy milk from any farmer who wishes to return to supplying it, but kept open entry for new farmers. Second reading on July 21, committee stage third reading under Urgency on July 22 with the govt making one major change removing all rights to open entry, supported by all parties.Dairy Industry Restructuring Amendment Bill (No 3)