New Zealand dairy giant Fonterra is supplying close to 400 million litres of raw milk a year to independent NZ processors at a default milk price-the maximum it is required to by law. The milk was being sold to New Zealand Dairy Foods, Auckland processor Independent Milk Producers, several other small companies and from next month, a new Waikato venture, the Open Country Cheese Company, said Fonterra chairman Henry van der Heyden. Fonterra, an effective monopoly controlling more than 95% of New Zealand's raw milk supply, is required under the Dairy Industry Restructuring Act 2001 to make up to 400 million litres of raw milk available annually to other processors. Open Country will initially buy 50 million liters a year from the big co-operative.
Open Country, a cheese export venture headed by former National deputy prime minister Wyatt Creech, last month asked the NZ Commerce Commission to intervene in its dispute with Fonterra over "reasonable" milk transport costs.